Today we had 2pt gap down after a strong trend day. We traded in a tight 2 pt range till the 1st Time Interval on the 15m and made a small rally back in to PDC weakness where price was rejected and sent lower to test the 1484 area.
Recap Notes:
Trade Selection - Good trading, Good initial Entry, great Exits. Sequence 1 was a 45/15 cycle sync w blocks on the pre open lows that were never violated. We tested this area but had little selling pressure prior to the 1st Ti at which time we put in a small rally to test the 1489.50. I was able
to catch the small 2pt rally with larger lot for a solid gain.
INTANGIBLE OBSERVATIONS:
Be prepared for slow start on Late day News Releases - Today we had a 7:00am news release, this typically causes slow starts and choppy mornings, On these days it best to be VERY careful taking high probability opportunities and quick exits on light lots.
Read the sentiment of the Market and Understand the Background - Today i was able to read the sentiment of the market due to the background strength that appeared in the globex session and the Prior Days Close. This along with the open gap of less than 2pts pointed to a continuation of higher prices albeit in a tight range. This allowed me to remain confident even when cycles appeared to be turning against the position.