August 9, 2012
- in Uncategorized by schooloftrade
Morning E-Mini-Russell Checklist:
Heat
Map: What is it telling us?
Map: What is it telling us?
There is
very little market personality on the E-Mini-Russell this morning with the heat
map at a DEAD ZERO. Keep an eye on the market
personality today this may be a day to sit-on-hands.
very little market personality on the E-Mini-Russell this morning with the heat
map at a DEAD ZERO. Keep an eye on the market
personality today this may be a day to sit-on-hands.
OHLC
Analysis:
Analysis:
3 out of 4
are higher-highs so we assume this is bullish.
are higher-highs so we assume this is bullish.
Overnight
Highs & Lows:
Highs & Lows:
We broke the
overnight lows and then proceeded to slow down and fail to make new lower-lows. We can see the big candlestick wicks around
the 795-796 area and this tells us the sellers tried and failed.
overnight lows and then proceeded to slow down and fail to make new lower-lows. We can see the big candlestick wicks around
the 795-796 area and this tells us the sellers tried and failed.
Are we
inside or outside day today?
inside or outside day today?
We are
inside the range from Wednesday and when we are inside day, we buy the lows of
the range, avoid the middle, and sell the highs of the range. Basically, we trade INSIDE the range.
inside the range from Wednesday and when we are inside day, we buy the lows of
the range, avoid the middle, and sell the highs of the range. Basically, we trade INSIDE the range.
What
price-structures do we see?
price-structures do we see?
· AB=CD Pattern iis bullish and we have
a BREAK of the ‘C’ point which means we should go higher and re-test the ‘A’
point.
a BREAK of the ‘C’ point which means we should go higher and re-test the ‘A’
point.
· Price wedge is right below us, look
for the buyers to fail and we can sell short into that price wedge.
for the buyers to fail and we can sell short into that price wedge.
·
Sideways Trading Ranges start up at
810.0 and go all the way down to 760.0 and we can see we’re in the upper-third
of this range. I want to prepare to sell
the highs of this range, which is the next possible trade.
810.0 and go all the way down to 760.0 and we can see we’re in the upper-third
of this range. I want to prepare to sell
the highs of this range, which is the next possible trade.
·
Double-bottom provides us with easy resistance
levels overhead. Now we know why the E-Mini-Russell
stalled above the PHOD. Now we know we
can buy with wave-pattern-long if we get above 805.3 because now we know that
this broken resistance turns into support.
levels overhead. Now we know why the E-Mini-Russell
stalled above the PHOD. Now we know we
can buy with wave-pattern-long if we get above 805.3 because now we know that
this broken resistance turns into support.
Where
will a reversal be likely today?
will a reversal be likely today?
We have
803.0 double-bottom resistance right on top of us, so this is where the price-reversal
should occur.
803.0 double-bottom resistance right on top of us, so this is where the price-reversal
should occur.
What is
our trading plan for today?
our trading plan for today?
our trading
plan for E-Mini-Russell today if price rises is to sell the resistance at 803.0
first 805.3 second, and then with strong buyers we will take wave-pattern-long above
805.3. take profit at the highs of the price
wedge and the runner will be the next double-bottom resistance at 815.5.
plan for E-Mini-Russell today if price rises is to sell the resistance at 803.0
first 805.3 second, and then with strong buyers we will take wave-pattern-long above
805.3. take profit at the highs of the price
wedge and the runner will be the next double-bottom resistance at 815.5.
if price falls
lower we will look to buy the PLOD and we will read tape and determine the market
personality when we get there. If the
sellers fail at the PLOD we need to buy this with 2-Step long pattern. If the buyers fail to hold this price above the
PLOD we will look for the fake-out breakout first and then sell with wave-pattern-short
with a final profit target at the swing-low below us at 785.4
lower we will look to buy the PLOD and we will read tape and determine the market
personality when we get there. If the
sellers fail at the PLOD we need to buy this with 2-Step long pattern. If the buyers fail to hold this price above the
PLOD we will look for the fake-out breakout first and then sell with wave-pattern-short
with a final profit target at the swing-low below us at 785.4