September 10, 2012
- in Uncategorized by schooloftrade
Morning Mini-Russell Checklist:
Heat Map
Review:
Mini-Russell
is trading flat, without much market personality.
is trading flat, without much market personality.
Overnight
Highs & Lows:
Highs & Lows:
We see the
overnight highs and the lows were both tested and both held as support overhead
and resistance below. This tells us we
have a range-bound market on our hands. We
buy-the-lows at support and sell-the-high at resistance making sure we stay
away from the middle.
overnight highs and the lows were both tested and both held as support overhead
and resistance below. This tells us we
have a range-bound market on our hands. We
buy-the-lows at support and sell-the-high at resistance making sure we stay
away from the middle.
Inside or
Outside Day?
Outside Day?
Inside day,
below PHOD and above the PLOD. Inside days tell us to treat this as a
range-bound market. We know exactly what
to do with this range bound market.
below PHOD and above the PLOD. Inside days tell us to treat this as a
range-bound market. We know exactly what
to do with this range bound market.
Find the price-structures: · Trigger-zone is support below us
· AB=CD Pattern is bearish and we are
right inside the reversal zone.
right inside the reversal zone.
· Price-wedge is bullish and it is
below us as a price magnet.
below us as a price magnet.
· Price-channel is bullish
Where
will a reversal be likely today?
will a reversal be likely today?
We will seea price-reversal at the AB=CD Pattern resistance which is from the current
price of 841.0 up to 849.5. Somewhere in
this range we are likely to see the buyers fail and the sellers take
control. Another spot for price-reversal
is at the PHOD or the PLOD. If price
rises we treat PHOD as resistance, and if price falls we think of the PLOD as support.
What is
our trading plan for today?
our trading plan for today?
Our plan is to stay patient on a Monday w/o much major
news. We want to sell the resistance from
the AB=CD Pattern so as price rises we’re looking for the buyers to fail so we
can sell short. If price keeps moving
higher we need to beware trying to buy this resistance until we get above
849.5. we want to sell this resistance so
we’re looking for new lower-lows and will use the wave-pattern-short to enter
to the downside. If we get to the PLOD we will assume its support first, and
then with new lower-lows we will sell below the PLOD. The target for our shorts is the price-wedge below
us.
news. We want to sell the resistance from
the AB=CD Pattern so as price rises we’re looking for the buyers to fail so we
can sell short. If price keeps moving
higher we need to beware trying to buy this resistance until we get above
849.5. we want to sell this resistance so
we’re looking for new lower-lows and will use the wave-pattern-short to enter
to the downside. If we get to the PLOD we will assume its support first, and
then with new lower-lows we will sell below the PLOD. The target for our shorts is the price-wedge below
us.
