Gap Seal 3.25 Sweet Spot = STRONG TREND

Yesterday's 15 Minute Close Bar = Down @ 1310.75

Yesterday's TREND = UP Trend

Yesterday's Power On Close = Strength

Today's Open = Gap Down (3.25 points) 

Result = Gap Seal and Strong Up Trend, test of Globex Support low prior to rally. Happend very early.

Today's TREND =  UP Trend then Reversal midday, then back down

Today's 15 Minute Close Bar =UP@ 1319.00

Today's Power On Close = Strength

Daily Volume = 1.6M Below Average

Today's $TICK close = Down @ +158

Daily Market Bias =  0.929 MODERATE/STRONG BULL

Today we had a gap up. Price reversed to seal and began a strong up trend. See Spotting reversal article.


Daily chart

TRADE OF THE DAY

Was the early morning move off the Previous Days Support. Price Gaped UP 3.25 points which is the sweet spot for Gap Seal and then strong trend days. 

• The Background showed 13,500 and 1500 support with strong pivot combined. 
• The inevitable target was Up @ 1316 R1 of the 13,500 tick. 
• We also had an EOT from globex session on the 1500 tick.
• 500 tick 2 exhaustion signal.
• Radar Screen showed $INDU,SPX flip from negative to positive.

Needless to say Price Bounced and rallied from 1311 break to 1316 high.

A look at the 13,500 and 1500.

15 minute view.

WHAT I COULD DO BETTER

Broke my rules and entered on a trade with NO cycle support and internals working against me. The premis was good in the direction of the trend, BUT there was NO support. Price broke lower to form cycle support and continued to move in our direction, BUT NOT before stopping my position for MAX lose on add-on trade. 

SOLUTION

NEVER add on to a position that is outside the rules. This will protect your account if I break my rules.

I needed to Simply WAIT for the cycle to form and enter as this was forming a 500/4500 sync .

Had POOR entry on a good trade primis, (the inevitable target was correct) BUT the trade was in the DEAD ZONE on an old cycle, The trade was a winner IF I would have waited to enter on the new cycle, or held through the old cycle. By entering too early I couldnt afford to sit thru to the next cycle. Especially in the DEAD ZONE where moves take longer to play out.

THE SOLUTION was to WAIT for the new cycle or sit on the side, I must remember the zones and make the proper adjustment to them.

MENTALLY 

I lost some focus after a good ice Breaker trade and started peaking at my P/L thinking about how many points I needed to quite!!! whenever I count points during the morning or after wins, I tend to give all gains back.

NEVER COUNT POINTS while trading. ESPECIALLY IN THE MORNING OPEN. This is the most important time of the day. I need to be Focused 120% on price action.

INTANGIBLE OBSERVATIONS:

Bench YOURSELF after consecutive loses or a MAX stopout.

Re-evaluate what you are doing wrong before attempting another trade.