October 18, 2012

Morning Mini-Russell Checklist:

Overnight
Highs & Lows:

We saw a
triple top failure at overnight highs (PHOD) on the Mini-Russell, and then we
saw a strong bearish candle at the overnight lows which confirms sellers in
control and a profit-target at PLOD.

Inside or
Outside Day?
We are inside-day
below the PHOD after the buyers failed

Find the price-structures:
·       Trigger-zone is support at 82.90
·       AB=CD Pattern is not easy to spot on
this chart.
·       Price-wedge is sideways
·       Price-channel is bullish in the very
short term and we are about to break the lows and try to sell-off.
·       Zigzag Pattern is not on this chart
·       Trading Range from 841.6 HOD down to
834.0 the recent swing-low.
·       Double-top Provides support below us
at 33.5, 30.7, and 27.5

Where
will a price-reversal be likely today?
A price-reversal
is likely around the PHOD at the highs of the price-wedge and trading range.
If price falls
lower a price-reversal is likely around the double-top support levels below us,
the PLOD.

What is
our trading plan for today?
Our day trading strategy for Mini-Russell today is to sell
the highs of the range using a 2step pattern short and take profit-target at
the support levels from the double-top overhead.
As soon as price comes down to the lows of the range and
bounces off the double-top support we will then look to take profit-target and
then get long buying after the price-reversal at support.

    schooloftrade

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