NARROW RANGE BREAK OUTS WITH LONG AND SHORT SWINGS 5/28/13

PA was in a narrow range and was an alert to a break out day.   The plan for a narrow range day:

•  When we have a narrow range, look for the break out
• After the BO, look for the +5 move.
• A trend day should break the 5 with some ease, and often will be a 50CB bar
• Struggle at the BO-5 (a FBO or shallow move slightly beyond the level) is an alert for a reversal back to the range
• Once we have a FBO at a level, PA is expected to PB to the prior level ( i.e.  BO-10 back to BO-5)
• With a FBO at the BO-5 or BO-10, look for the possible swing to a similar level for the opposite trade forces.  A FBO-5 Bull/Bear often will swing to the BO-5 Bear/bull.  This creates a BO-5 range bound day.

TODAY:

narrow range bull BO that stalled in the mid range between the BO-5 and BO-10.  With the additional 50CB break for the bear, we can assume that we do not have a trend run day, but likely will see a range bound day.  This would imply a run to the bear BO-5 to BO-10.