I was visiting DTI for a free seminar awhile ago and Tom Busby gave me this great idea for alert zones. These are his support and resistance areas on any particular day.
You will notice yesterday’s post had a red box and I used that to identify a key area where I thought a resistance/possible inflection point was likely. This was an inside peek for you at how I remind myself of these dangerous pivots.
In today’s action resistance held inÂ overnight trading at the daily 50 ema. The regular day session never challenged it, despite the gurus chanting for 1300 today.
Breakouts are powerful when they occur, but I find they don’t happen as often as traders believe they will.
Yesterday’s 75 was the decision line this afternoon, and once the morning low was revisted, the retracement was well underway. Let’s keep an eye on that wedge formation.
This week’s zone will hopefully clarify the next big move but until then it’s step by step taking the opportunities both ways.
The closing area today was predictable by our eminiwizard system traders. Full disclosure of the trade logic is explained in our course material.
Nothing beats trading in the zone.