A RANGE RUN TREND 6/3/13

For most of today we were in a range bound mode.  Coming off the LB in the pre open PA moved to the SB to complete the range run. The first PB at B4-5  trapped longs at the mid range and the EMA to move back to complete the range run.  (A)

Range run to the LB but a gap was noted and b12 developed a 50CB.  Price had a healthy gap to the TL as it pushed back to the SB   (B)


Reversal at b26 and a new bull 50CB TL  (C)  and the touches on the TL  (D)  and the gap grows as PA pushes to the two targets and the completion of the range run.

One factor that prevents trading or quality trading is letting a bias detract from what PA is trying to accomplish.    The reversal around b26 was expected to attempt a range run.  Plays can be made at the reversal, a cross of the EMA, a pull back to the trend line, a higher bull bar, a pull back bear bar(s) that stay  higher than prior bears, and hundreds of other reasons.

But every time a bull or bear pushes, there will be traders jumping to look for a failure.  Essentially,  the "can't".  Suggestion:  play your patterns and reads.  Look for the entries, set targets, and stay with price that continues to show a trend.