Today there were opportunities but due to the tight range following an AfterMarket Gap of more than 10 points. I was expecting minimal Worth While moves. Although there was a few i was not committed to trading so not much to say about personal performance.
But we had a great example of what i refer as a GAP TEST day following a Large GAP down in After Hours trading that traded sideways for most morning then made some midday moves after a very slow morning. However we did see a Gap Test which made up the TOP of today's Range and a good bounce off the lows about half way thru the day.
15 Minute Gap TEST Failed @1300 area
The GAP Test was in confluence with the 4500 tick chart Pull Back signal, 13,500 Support line that became Resistance after the gap down, we got a Resistance cycle on the 1500 Tick, and an overshoot with Bearish Exhaustion buying on the 500 Tick.
Also the 2 minute shows a very clear Resistance Line with Bearish Exhaustion.
These combined lead to the most explosive move of the day. The Move From 1300 to 1289 area.
What Did I do Well?
Forcast for the day was accurate as we expected a tight range day after the Large Gap.
I was able to spot good entry and exits as the range was well defines.
What I can take from Today:
- On Days Following LARGE GAP's expect a tight range relative to ATR, today we seen half. (Actually 10 points was lost on the gap and the subsequent Sell off was 10 points to the Low! The Average Daily Range over the past 5 days was 20!!) Someone knows what they are doing.
- When these days are expected I should consider 1-2 very solid moves at the RANGE EXTREMES only, Wait until the Range is Establish and then be aware of those areas. This will take patients and Focus. Or consider taking the day off.
When we get an obvious Range that must be broken such as a Triangle like this on the 40,500 tick.
The Specialist will try to jump past the support, today they were successful at keeping the public out of this move by using the LARGE GAP. This is misleading on the Daily chart as it appears that we had a solid Down move from the previous day when in fact the move was Manipulated in the AFTER HOURS.
This principle happens Intra-Day as well with Breakouts.
The concept is to mark up/down prices in a way that minimal public participation is had, it shows up intra-day as a runner on low volume.
Intangible Jewels:
Look for Bar confluence between the Pro/Am, Better Volume and Block Trade bars. lead to a nice 3 point pop.
Enter on anticipation of very tight micro trend cycle crunches like these.
Again on a break to the upside
