Today we had a 6pt Gap Up after printing Rambos on the lows very early n the Globex session then printing Block bars on the 4500 in a PB in trend mid after hour trading. Price moved higher putting in a EOT cycle in the pre-open BUT then selling down closing on the low of a block bar, however we still remained above the mid line** is signal the 1st test of the 0 Line in the cash markets simultaneously** Very key in confirming the Daily prior day's low volume closing off the lows (TEST IN A RISING MARKET) bar. We got a solid rally on the 1st Ti testing the 1586 area.
Recap Notes:
Trade Selection - Perfect Trading, Great Entries, Great Exits.
Sequence 1 1S1K. This trade was a 45/15 cycle that saw price trade into a 45/5 while fighting the next 1500 cycle Resistance. The break above here was the 1st Ti rally moving 6pts from the morning low. I was able to jump in time and get more on before the train left the station. I probably could have held for the close of the bar to maximize gains but i did exit into the rally taking a solid portion out.
ADJUSTMENTS & OBSERVATIONS:
Confirmation to hold during a rally - When a rally ensues and we get a professional bar (on say the 15 or 45, 5m) printing this Hammer/Hangmen bar then we may hold till the close of the bar. If we close above it then this signal more buying by late pros absorbing the profit taking sell orders as show by the tail. This is a sign of higher prices.
**Also Note that breakout bars on the 1st Ti will usually close on their highs putting in a few more points before stalling, These bars could be held for 15-30 minutes to maximize the rally. The break above the 1st Ti Bar is the 30 minutes total from the 1st Ti @ 7:00**
Mid line and 0 Line Confluence - Today we had a block bar closing on the low but remaining above the mid line. At the same time the $Tick was making its 1st test of the 0 Line. To add to this was the Vpoc of the opening bar showed Strong balance symmetrical protruding between 1581-1581.75 after gaping up in the globex. When the next bar prints and holds this VPOC we have very strong confirmation of higher prices.
Patient on the Open waiting for the cycles is the key. Allow the directional Premise to show itself
**Also Note that breakout bars on the 1st Ti will usually close on their highs putting in a few more points before stalling, These bars could be held for 15-30 minutes to maximize the rally. The break above the 1st Ti Bar is the 30 minutes total from the 1st Ti @ 7:00**
Patient on the Open waiting for the cycles is the key. Allow the directional Premise to show itself