Tuesday, September 11, 2012

30 minutes of Selling pressure on prior days close + 3.5pt Open Gap Up = TRD

Today we had a 3.5pt Gap Up after Hard Selling on the close, there was appearently some heavy accumulation as well as price traded to the specialist wholesale levels @ 1421.75 area in the globex session then rallied to Open 3.5pts above the close, pre open momentum was long as we continually drifted higher throughout the morning session.
Recap Notes:
Trade Selection - Poor entry ok Exits, the premise appeared weak but i allowed price to slowly move away from my price. We drifted in a tight range all morning. I held my position tooooo long past all Ti's waiting for the reversal that never happened. 
My mistake was that i NEVER did get the Block bar on the top of the 1500 tick early, instead it appeare on the short pull backs in trend.


INTANGIBLE OBSERVATIONS:
**NEVER FIGHT TRD clues, If these signs are present EXIT and Reverse position prior to 3rd Time Interval or Risk being sucked into a squeeze.**
Clues are:
  1. $TICK NEVER stayed below the 0 Line
  2. $Tick Trend Line NEVER broke the 0 Line
  3. $Tick kept bouncing off the 0 Line
  4. Price NEVER pulled back more than 1pt or so
  5. Price kept breaking into new highs, slowly
  6. Price Ignored ALL signals
  7. Price NEVER Responded to Time Intervals ie. (pullback)
  8. Blocks Not appearing at peaks, but instead on shallow PB in trend
High Time FrameStrength appearing on Block Volume into lows, notice 40500 Block with absorption on the next bar
 Tick showing Block bars on the shallow dips into trend.

Trust the Premise!! and Be patient on the open - Trade behind the premise BUT REMEMBER TO enter at wholesale levels.