The key to day’s opening trade by my work was the 60 minute chart.
I posted to other traders that “shorts need to be patient, if 36 gets taken out the gap at 49.25 would become a potential target.”
Milestones are milestones, and the gap fill near 50 shook out a lot of shorts who thought they would have an easy time of retracing to the overnight low.
“With profits, you can use 52 as a stop for the profit taking pullback. We should test 42 at least, and more likely 39 before the morning is over.”
Lucky? Probably. But odds favored a pullback. Symmetry was everywhere, and the primary trade was done. Turns out that was the high of the day. Charlies who ignored the globex launch zone missed the symmetry in the chart patterns.
“Look for testing 35, then possibly 32 and 28. Gap fill at 23.25 is also possible, and 45 is the stop for that”.
I love it when I say what eventually proves to be smart things.
The dicey trade came at the bounce back trade. The early shorts were all messed up, the late longs were all messed up.
The wrong way charlies had been cleaned out on their early short, then their pullback buying the long.
So…Now who’s turn?
Shame on you if you overstayed the 23.25 trade. Support was 20, and odds now favored the bounce for profit taking, but how far?
Only the aggressive and the mentally impaired tried the 29 short, the more likely 34 retest was doable, but theÂ gotcha area, and the 38 to 40 was the conservative trade with 42 stops. With profits, that’s my favorite.
Target the 30 and look for the bounce into the 34 settlement area., as 28 was likely support again.
Reading chart patterns takes practice. The 35 area being no man’s land, anything can happen.
Having a system helps, and chart reading the tape is important, as we need to be going in the right direction for the “next 10 minutes” to make our job as traders easier.
The globex 10 minute chart as well as the 60’s were helpful today.
Knowing what you are looking for takes skill; “tape reading” as the old-timers called it.
The Angels and Demons will guide us, if we will only listen to them…