Monday, November 5, 2012

1.5 gap Up after closing strength and test of lows = Sharp rally on 2nd TI


Today we had a .1.50 Gap up after a hard sells on the close of the Friday indicating strength. we open still lower and tested the 1403 area for the 1st and 2nd time intervals before breaking out of a 4.75pt range to rally to th 1409.75 zone.
Recap Notes:
Trade Selection - Good Trading, Good Entries, Good exit. my 1st trade I entered off a 1500 cycle away from trend BUT WITH BACKGROUND STRENGTH. I trusted my premise of strength and was able to exit into the subsequent rally after continued test of the lows. I could have been a bit more patient to get more on at the lows.

INTANGIBLE OBSERVATIONS:
Trust the Background - Always formulate a premise based on the higher time frame Background. 
Trust your premise and look for test and confirmation in wholesale areas.