BOT levels are played for range runs and for break outs. PA that stalls around a BO level tends to PB to a prior level. For instance, today we saw a stalling at BO-15 that returned to the BO-10 then BO-5 as the DT trade developed.
Normally scaling is not a recommended trade. However, there are times when it can be a benefit if the trader maintains a risk level and gets out if the trade does not materialize. An acceptable scale technique is scaling where PA indicated exits by longs/covering by shorts. Thus, scale in points and scale out points. The scale in points today were in the general area of 6.5, 7.75. and 10.25. These scales were looking at the extended run and betting it was finished within the BO15. Another key was a pattern we have discussed previously: the DT or "Dick Tracy." A nice left side push, a stall and a lessor push. Part 1 and 2 completed, now look for the right side selling. It did in the ES and TF.
DT
ES TODAY
TF TODAY
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