Quote from Brianharvey:
You appear to be the only one who 'gets it' though! Maybe you're just a genius?
Fair play, though. Good trade. I don't know why you went long there though. Isn't there supposed to be a break of a supply line?
1) I often let price pull me into a trade soon after the open settles down by placing a stop on one or the other, sometimes, but rarely, both sides of the opening range. While everyday is not a trend day, by any means, the NQ is often good for 5 - 10 points or more as it works out the extreme high or low for the day off of that first swing. This comes merely from observation of how the NQ trades over time.
2) Today, there is also the context of a) a V bottom reversal b) The Dog not barking [price rallying against the expectation of many for a continued drop] and c) price very oversold relative to its most recent short term channel, which I posted at 7 AM EST and again soon after 9:30 EDT.
As to be a genius, I assure you that genius's do not spend nearly 30 years doing what I've been doing for a living. But I am smart enough, and willing to work smart enough, to follow DbPhoenix's threads, read Wyckoff's books, study the charts at the Wyckoff forum.
And go back to the first post in this thread:
Step One: Determine current trend
Step Two: Determine where we are in that trend
Step 3: Determine your proper timing of one's entry.
For today:
Step One: Price has been in a sideways trend channel for about two weeks, with a slight downward bias
Step Two: Price has reached an extreme oversold condition relative to its trend
Step Three: Enter on a stop if price breaks above the high of its opening range; given the extreme oversold condition, look for reasons to stay long rather than reasons to exit quickly - if price gets to 3210, the approximate midpoint of 241.50 to 178.25, then look to see what traders do - sustained trade above is buyer strength, trade below, would give a nod to the sellers.
Here is that chart from 7 AM again:
