Today we had a 7.25pt gap Up off Prior days closing Weakness. which suggest a tight range drifter to the long side. We traded in a 3.5pt range till the 1st Time Interval with inside bars on the 15minute. price was unable to break below the opening bar thus confirming the potential for higher prices late.
Recap Notes:
Trade Selection - Good Trading, Good Entry, Great exit. I entered on a liquid entry of PDC weakness that printed Block Bars at the Globex highs on the 13,500 and 40500 with 1500tick EOT. The short took light heat but broke down as expected for a solid gain early as price seemed to prep for a late day drifter to the long side.
INTANGIBLE OBSERVATIONS:
Large Gap Opens -Watch for Trapped Longs and Angry Shorts that will be forced to make a decision early.
Today we saw price gap up 7.25 pts from what appeared to be a weak close. Shorts would be forced to bail at higher prices and longs would be encouraged to hold for higher prices (that few will take profit into). Suggesting that the specialist would be looking to Distribute at even higher prices before staging an even larger decline in the upcoming days. Take advantage of todays likely closing senerio which would be higher prices.
Be aware to take early profits off the table: Today i allow prices to move deep in favor and reverse to put me under pressure. i had to barf a few lots simply because i lost focus and started thinking about yesterdays behavior.. BIG mistake. Always take early pops
Trust the HTF (Higher Time Frame) Confluence, be sure you are trading away from Strength or Weakness. Today we had HTF Strength showing its hand by with confluence on the 135 and 40,500 tick. and a 5.25pt gap up further indicating momentum from the Prior Day and Globex session. We had Trapped shorts that just below 1440 for more fuel.