LIMITED CHANGE IN RANGES = EXTENDED BO WATCH 1/20/12

THE ranges were slightly modified, and could well have been unchanged as PA extended from the US close to US close in a tight range.  These tight ranges tend to create opportunities for extended BOs in the magnitude of 10-15 points+.

Today was filled with 2+ range runs over and over.  The only significant BO was to the bull upside just to please the +10 holders from the LOD traders, and later to the same target for the +5 players.

The first BO was calculated, however a stop hit took the trade off.  What do you do?  If you have confidence, re-enter the trade.  Cost some commissions, but it produced to the target discussed.

If you have a target x or a stop x keep to your plan.  Moving stops can create costly habits.  Move and lose hoping it will bounce back.


What you should be looking for:

1. Range FBO around b3-4 for a short.
2. Range exits at b8-9 with long interest  for the range run.
3. B12-13 reversal range run (did not take)
4. Look for bear TL break. Started at b16-18
5. B19 short at signal, with an eye on the bear TL below the EMA
6. Best setup of the day at b26-28.  Range reversal, 50CB break, bear TL break, B29 gap from lower bull TL B26-28.  Range run toward target with a secondary entry to complete.
7. Target reversal to SBOT.
8. B62 area holding at the SBOT. Anticipated range run
9. B74-75 EMA hold PB  for second leg to garner a +5 for the bulls at B62-64.

Knowing the BOT range is valuable,  Certainly as the day progressed many traders would have some notation around 1308.75 and 1306.  Having a "feel" for what professionals must get in a trade is valuable as well.