Today we had 1.25 Gap Up and pre-open test of the Globex highs. We opened with selling pressure and momentum but quickly rallied to weakness @ 1509.50 before probars printed at a 45/5 cycle sync to move prices lower on the 1st Ti marking down 7.75pts on that 15m bar alone and continuing over the next 30 minutes to put in lower lows.
Recap Notes:
Trade Selection - Good trading, Ok initial Entries, Great Cuts and Exits.
Sequence 1 was a solid 45/15 cycle sync that put in a quick rally to test the 1509.50 area. My signal reading has been off due to the strange appearance of pro and block bar in odd places. However the solid exits continue as i was able to scale out into the rally with max on the final lot. I did miss a great opportunity to take a C(500 in trend) following the test into weakness. I got the block bar that i want but price moved above it and confused me to hesistate. Overall good day leaving money on the table.
INTANGIBLE OBSERVATIONS:
Reading the Signals - I need to do a better job reading my signals, i have been off all week live but in hindsight Im simply missing the bigger premise, Great exits have been the saving grace. Take more time to note the important signs such as rounding, Block bars on Globex Highs/Lows and turns and in POC areas etc. Ask yourself what are specialist trying to get investors to do. Where do i see price ending up on the 1st Ti.
NO News = Vague Signals?? - While observing charts im noticeing the past few days have been No news and signal have been mixed and/or vague. Is this a sign of manipulation as long term players on the sidelines? When Long term players are out maybe we get more short term signals in tighter ranges.. something to keep an eye on while asking what are the specialist trying to get investors to do?
Mixed Signals Again - Today we had mixed signals from the HT and LT frames. We had blocks on the 40500 tick highs of the previous day, But we also had a block bar on the pre-open low of the 1500 tick. For open momentum it often a good idea to go with the most RECENT or Shorter term block signal as it places time on your side prior to the 1st Ti.
When Signals are Vague - Today we had vague signals in the globex and pre-open again, I traded the short pre-open momentum which could have been costly had i not exited quickly. The Key in this situation is to go BACK to the prior Days Close, Was there Strength or Weakness? Today there was clearly strength with pro bars on the 4500 low with EOT on the Close. We also had cycle sync's on the 135m and 40500 tick HT so this was the true Direction Bias coming into today.
Recognize when there are NO signals and Act appropriately -Today we Opened with a 7.75 Gap down but had very little signal bias. On days like this it is best to stay LIGHT and probe for opportunities taking small profits off the table at every chance. Be ready to quit early.