Today we had 6.25pt Gap up with NO significance Block Ops signals to open again, However we have long cycles printed on the 135m and 40500 tick along with 45 EOT on PDC and 1500 tick PB in trend signal. Once the 155 tick EOT was printed and violated with heavy professional bars price was able to test and break the PDH of 1501.75. From here the rally ensued reaching 1504 by the 1st Ti with Potential to reach 1808 by days end.
Recap Notes:
Trade Selection - Good trading, Good initial Entries, Good Cuts and Exits.
Sequence 1 was a solid 15/5 cycle sync with globex momentum, however price failed to move more than a point below my entry and quickly bounced. The key here was that there was NO Blocks or Pro bars on the Globex Highs so the background signal was deferred to the Prior Days Close which had strength with pro bars and an EOT on the lows, Also the HT had cycle in sync. I was able cut out with a small loss and no regrets.
Sequence 2 Was a PB 15/5 reversal of the prior sequence in trend. I was able get more on as we moved up and hold for the break of PDH. Very Solid Exits as I exited INTO the Rally holding the last for max profit.
INTANGIBLE OBSERVATIONS:
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.