October 29, 2012
- in Uncategorized by schooloftrade
Mini-Russell chart prep:
Mini-Russell
saw lower-lows and lower-highs overnight, giving us very bearish market
sentiment. Recently, however, we saw the
big bullish price-reversal candlestick wick, followed immediately by the strong
bullish green full-bodied candle. The market
sentiment appears to have reversed and now we assume this is bullish.
We havefailed below the PLOD which makes this an inside day, outside day failure. We want to buy when the price moves outside
below the PLOD and then quickly comes back above the PLOD. Take final profit-target at the PHOD.
We can see
major support with the AB=CD Pattern around the 798.0 area below this range.
major support with the AB=CD Pattern around the 798.0 area below this range.
We have a
slightly-bearish price-channel and a price-wedge from drawing trend lines off
the highs and the lows.
slightly-bearish price-channel and a price-wedge from drawing trend lines off
the highs and the lows.
Sidewaystrading ranges from the PHOD 818.6 down to the PLOD 804.0 and then a wider
range from 821.0 down to the 801.7 the LOD for today.
Price can
rise, fall, and trade sideways, so as price rises the price-reversal will occur
at the trigger-zone resistance and the price-wedge highs overhead.
rise, fall, and trade sideways, so as price rises the price-reversal will occur
at the trigger-zone resistance and the price-wedge highs overhead.
If price
falls we look for the price-reversal at the PLOD (right now) and the price-channel
lows which are also the trading range lows.
falls we look for the price-reversal at the PLOD (right now) and the price-channel
lows which are also the trading range lows.
Our day
trading strategy is to sit-on-hands today as the market is now closed after
915am EST. We did our prep to make sure
we learn more every day, and to also stay with the routine.
trading strategy is to sit-on-hands today as the market is now closed after
915am EST. We did our prep to make sure
we learn more every day, and to also stay with the routine.
