TRENDs: FINDING THE ENTRIES 6/20/13

SUPER selling day.  No one will argue with that.  Yet traders get caught in counter trend pull backs and curse the market.  THE TREND is your trade.  A CT must have a reason the same as any trade.

Today we had the sell bias early.  The range was in, and PA was struggling with a break higher.  The trend trades you should look for are at resistance/support.  These points are usually (opinion) revealed over a few bars, and seem to be found at/near a known value.  KV's can be the EMA or a BOT value.

Look for the entry points and follow your plan.  When your target hits, take your trade off.  If your plan is to take partials, then follow the plan,  Deviations are geared to eventually hurt you.  Example:  a CT today in such a strong trend is a deviation.

TODAY:

narrow range
short bias
Minimum target +5 from the SBBO
Thought EMA sellers would get their  +8 and +10 targets
PA gap to the EMA reflects a strong trend and can be used to extend your hold past initial targets

• #2 represents resistance stalling in PA and entry points to be prepared to take.

• #3 is the CT PB's back to test  a prior level.  IF YOUR going to CT trade, be aware of these likely limits to the move.  You can profit, just know the limits, have a plan, know the risk/reward anticipated.

• 3's turn into new 2's in a trend.  In a strong trend with PA gap, the trading can be day long.
• If your playing the extended hold trade, stops generally move to those prior support/resistance levels when PA moves beyond the level.