November 13, 2012
- in Uncategorized by schooloftrade
Mini-Russell Chart Prep:
 |
| Mini- Russell Chart Prep |
We can see
the bearish price-channel and the trend lines drawn from the major previous swing-low
to create a bearish price-wedge. We are
trading just below the price-wedge and this price-wedge price-structure will
act like a price magnet, drawing up price into the price-wedge and testing the PHOD
and the 805.5 trigger-zone resistance.
the bearish price-channel and the trend lines drawn from the major previous swing-low
to create a bearish price-wedge. We are
trading just below the price-wedge and this price-wedge price-structure will
act like a price magnet, drawing up price into the price-wedge and testing the PHOD
and the 805.5 trigger-zone resistance.
I can see trigger-zone
resistance at 805.5 and 825.0 along with trigger-zone support at 792.5 which we
are trading directly on top of at this time.
resistance at 805.5 and 825.0 along with trigger-zone support at 792.5 which we
are trading directly on top of at this time.
We can see
the bullish AB=CD Pattern with major support at the 779.0 level. Notice that the lows of the trigger-zone are
also in the same location as the AB=CD Pattern support. This will be a very important level for
buyers.
the bullish AB=CD Pattern with major support at the 779.0 level. Notice that the lows of the trigger-zone are
also in the same location as the AB=CD Pattern support. This will be a very important level for
buyers.
Our day
trading strategy for the Mini-Russell is to buy above the PLOD with a profit-target
at the PHOD. If price rises higher I’m
buying pullbacks with new higher-highs with the goal of entering long at the
lows of the price-wedge and using the PHOD, price-wedge highs, and the trigger-zone
resistance 805.5 as my final profit-target for the buy-side.
trading strategy for the Mini-Russell is to buy above the PLOD with a profit-target
at the PHOD. If price rises higher I’m
buying pullbacks with new higher-highs with the goal of entering long at the
lows of the price-wedge and using the PHOD, price-wedge highs, and the trigger-zone
resistance 805.5 as my final profit-target for the buy-side.
If price
moves lower the buyers will have tried and FAILED above the PLOD, which means I’ll
be selling short below the PLOD. We will
have a challenge selling short anywhere below 784.0 because we have multiple
levels of support to worry about, including the AB=CD Pattern at 779.0. We want to buy this support, so as price
falls lower stay patient, sit-on-hands, and look to buy at that support.
moves lower the buyers will have tried and FAILED above the PLOD, which means I’ll
be selling short below the PLOD. We will
have a challenge selling short anywhere below 784.0 because we have multiple
levels of support to worry about, including the AB=CD Pattern at 779.0. We want to buy this support, so as price
falls lower stay patient, sit-on-hands, and look to buy at that support.
