Today we had 3pt Gap Up after we printed a Block Bars at Globex support on the 13500 and 1500 ticks. Price showed further strength by holding at these support when tested. We tested the Gap area and Globex POC @ 1517.50 where we put on Blocks at the very bottoms across all ticks and 15 minute charts and rallied from there to test new highs @ 1522 around the 1st Ti. No surprise if we get a reversal around the 2nd Ti (signaled by the 3pt gap up)
Recap Notes:
Trade Selection - Good trading, Good initial Entries, Solid Cuts and Exits.
Sequence 1 was a 15/5 Liquid entry that printed Blocks on the 1500 and 500 ticks with an EOT Resistance on the 1500 tick. I was very touchy as we had strength on the background so i probed the short a few times getting on and off before committing on the breakdown. Good solid trade.
INTANGIBLE OBSERVATIONS:
The IMPORTANCE OF PROBING - As learned from Don Miller, you can best feel the current by swimming in the water.
Using probes to get a feel for the action is a great way to take the edge off and manage risk when uncertain. Today i put on several probes before committing to the main position, it was a total of 5 lots over 3 probes that only amounted to a .75tick cost of doing business, well worth the benefits resulting from the committed trade. Had price moved far away from my position i would have limited my exposure and taken but a small loss while having time to reconsider my Premise.
Taking what is given - Today was a good example of taking what the market gives and being satisfied with it. I took an open ice that was momentum based from the globex highs. This trade had solid signs of LONGER TERM WEAKNESS.
However we open with only a 1pt continuation gap - signalling a high chance of trading in a range. The rang was only 4pts on the prior day and we had only moved 3pts before bouncing prior to the 1st Ti. Now I must ask myself, am i willing to wait for the move to breakdown? which may happen later in the day of not at all today. Or limit my exposure, take what is given and enjoy the rest of my day? NO regrets for choosing the later.