Another expansion day above the recent support range. On an expanded look, the bullish trend is obvious. The issue is how to enter at the open,which is notorious for whip to take traders out. The first 1/2 hour to hour is professional feasting time and should be carefully evaluated prior to establishing a trade.
The Stock Club was meeting this morning , and I used some time to talk about the moment of the bars, and to show a trade.
- The trend is bullish
- The important range (for several days) is below us and support.
- The MA support is below us
- PA was in a second leg off the 20 EMA (blue)
- As it turned out, sellers trapped on bar 2 and again on 4 helped to fuel additional bull pushes.
When you build the why, your trade has a better change to work in your favor. The "building the case" will give you the confidence to stay with the trend, and ride though bars 2 and 4.
Yesterday it was a reversal bar play. Other days it's a break of a BoT. You have a choice: waiting all day for the only setup you have, or trade a variety and get in and out.
This morning we were looking at the 3 minute, 5 minute, and the 34. You have the reasons discussed for trading the 5m, but note the support on the 34m. PA in a bullish trend and held the bears at the 20 EMA.
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