Today’s Stolen range open left RTH traders with little choice but to adapt to the terrain.
Actually to the Rain, as markets were in synch south side.
The Umbrella pattern will make you rich if you learn it, understand what it can and cannot do, and play it.
There was no doubt we were oversold, but that in itself doesn’t cause a bounce. Crash Days throughout history have shown us that.
Fortunes are lost and won in the blink of an eye in a few days of panic. We are always on guard to protect ourselves from some kind of stupidity like averaging in multiple times without an uncle point.
Our plan was simple: assume the early longs would get taken out and late shorts would get hit if they overstayed.
Hitting bounces later day was also considered a reasonable strategy in the umbrella pattern. All the bigger time frames said bounces should be expected to be contained by the 62 to 65 zone, and the out side stop was the half gap 67.5.
We assumed multiple enties would be required both sides, but especially the short side since we had the stolen range day in play already.
The lunch dtop was a decent trade with the ID trend, but the afternoon stiffened up quickly from the 56.5 angel support, and late shorts were trapped.
Flexible thinking will help us as long as we can think about multiple ideas at the same time. If we get too focused on being a one-way trader, we will squander our trade capital needlessly.
Interestingly, the long side made more travel range RTH, despite it being a contra.
We try to teach tape reading step by step, so that traders learn to depend on themselves, rather than on a high-priced guru who makes calls and has no better insight into the market than most of us.
The Rain lines are only part of the system; there are so many different variables that come into play, and no system is perfect or works 100% of the time. Think of the 82% odds for the half gap; if you played that today out of the gate, you probably got stopped out several times.
At the open we suggested to longs to wait, allow trapped longs to “pay up”, then try for the long side bounce with a two point risk.
That’s the type of trading we do day in and day out.
Our system is simple and it is complex.
If you are not desperate, and can take time to learn it, you will develop a life time skill allowing you to take money out of the market.
Some of our traders already had their daily pay by 1030.
Find one good trade a day, that’s all we need.
We found several today, and advised playing both ways. Traders who did were smiling despite the rain.
Thanks all for posts on #EMWS today @PipCzar @RenaTrader @mctweet770 @Deano5050 @50Pips @spz_trader @SE1_Trading @Marketrend
Tell me what to do now, I want you back…
Use stops, then no worries.