Today is a two chart review today, with excellent reasons. The 1 minute chart needs to be free of distractions, but important levels need to be kept in plain view. So on the 10 minute chart I have levels outlined as per my prep. Arrows aren't trades taken, and there are no exits so the trades weren't even really managed. They are only there to show what might be a good trade based on what price is telling me.
3492 for overnight low, 3500 for the high, 3496 for the mean. We didn't get there, but had to be ready for it if we did.
3516 was our overnight high, and below this we also have a tight trading range just before open (but this isn't marked in.. although it comes into play)
3524 is yesterday's high.
So lets go read price!
A - Just before open, price drops and settles to about 3509. This was the mean of the pre-market range yesterday.
B - At open, we instantly rally to 3516, our overnight high. You can see the double top in the two adjacent bars in that the close of one is below the high, the open of the next is below the high, then it goes up for a tick and then it drops. The fact that this double top happens at the overnight high is a perfect reason for a short, hence the arrow marked.
It is critical to get in at a good price, and as Db says, you want to get in during a state of confusion. So my entry would be based off a RET in the right tick which I can watch on my one minute chart, but I also have a tick chart up so my eyes can quickly scan that. This ends up being an excellent trade.
C - Price turns around at 05. I'm not exactly sure why, and because so much trading has happened around these levels it might be easy to find some level that matches up with this, but the REJ is noted nevertheless.
D - Here, this bar forms, and although it opens and closes below the midpiont, the low of this bar is still above the low at C. A long above here can be tried. Price either rallies up or it doesn't and hence would never be triggered.
E - This an an even better long. We break out past the overnight high at 16, have a clear RET between these two bars, so lets try a long.
F - We don't get too far, and we note that we stall at 24, the previous day high. Sure we break past 24 and get to 27, but if we are long from earlier, we just sit back and wait.
G - The bar after the top breaks lower than the rejection bar, and since the low is now below the previous day high, we can quickly try for a short below this bar, maybe at 22 or so. We have good reasons for taking a short here, its not just in the middle of nowhere.
H - We begin to stall at the overnight high but break through, we also come back up to test it. If we got in at G, we are sitting pretty. If we shorted below 16, waiting to break back into this range, we get very nervous when price comes back up here and makes it to 17.
I - The above bar opening on the low, and closing below the midpoint points to a rejection, especially once again since we are watching the level of 16. This nuance I only notice now, in review, but it makes sense. So a short below this would be another well thought out and legitimate trade.
J - We clear the lows of C here, but overlapping bars show a halt. I'm not exactly sure why here, 3502. I know that 3500 was the mean a couple of days ago, and this number has come up over and over again, but I don't have this marked for today. At any rate, we go back up.
This would be a good time to point out the dashed blue line on the one minute chart. We can call it roughly the mean of the range prior to the open, but this to me became evident after price consolidated after we come back up from J. It is the 50% level of the down move, and the mean if this turns out to be a range. Traders are completing lots of transaction here, and we see price move equal amounts away from this mean.
K - We get to just below 24 again and stall. Two bars after the high have lower highs, so lets try for a short. We get back into the mean.
L - This is an interesting area. A short or long, above or below the 24 level once again can be taken.
M - Here, after a consolidation, I would think long again. We don't have much to stop us from going higher above us. It would trigger, but doesn't get far.
Ok.. enough. I wasn't exactly trying to trade today, shame, most of my calls were good. What I do feel is more confidence though. Having more reasons to take a trade based on price action around the outlined levels will help me put that trade on. Really going to run with it now!
3492 for overnight low, 3500 for the high, 3496 for the mean. We didn't get there, but had to be ready for it if we did.
3516 was our overnight high, and below this we also have a tight trading range just before open (but this isn't marked in.. although it comes into play)
3524 is yesterday's high.
So lets go read price!
A - Just before open, price drops and settles to about 3509. This was the mean of the pre-market range yesterday.
B - At open, we instantly rally to 3516, our overnight high. You can see the double top in the two adjacent bars in that the close of one is below the high, the open of the next is below the high, then it goes up for a tick and then it drops. The fact that this double top happens at the overnight high is a perfect reason for a short, hence the arrow marked.
It is critical to get in at a good price, and as Db says, you want to get in during a state of confusion. So my entry would be based off a RET in the right tick which I can watch on my one minute chart, but I also have a tick chart up so my eyes can quickly scan that. This ends up being an excellent trade.
C - Price turns around at 05. I'm not exactly sure why, and because so much trading has happened around these levels it might be easy to find some level that matches up with this, but the REJ is noted nevertheless.
D - Here, this bar forms, and although it opens and closes below the midpiont, the low of this bar is still above the low at C. A long above here can be tried. Price either rallies up or it doesn't and hence would never be triggered.
E - This an an even better long. We break out past the overnight high at 16, have a clear RET between these two bars, so lets try a long.
F - We don't get too far, and we note that we stall at 24, the previous day high. Sure we break past 24 and get to 27, but if we are long from earlier, we just sit back and wait.
G - The bar after the top breaks lower than the rejection bar, and since the low is now below the previous day high, we can quickly try for a short below this bar, maybe at 22 or so. We have good reasons for taking a short here, its not just in the middle of nowhere.
H - We begin to stall at the overnight high but break through, we also come back up to test it. If we got in at G, we are sitting pretty. If we shorted below 16, waiting to break back into this range, we get very nervous when price comes back up here and makes it to 17.
I - The above bar opening on the low, and closing below the midpoint points to a rejection, especially once again since we are watching the level of 16. This nuance I only notice now, in review, but it makes sense. So a short below this would be another well thought out and legitimate trade.
J - We clear the lows of C here, but overlapping bars show a halt. I'm not exactly sure why here, 3502. I know that 3500 was the mean a couple of days ago, and this number has come up over and over again, but I don't have this marked for today. At any rate, we go back up.
This would be a good time to point out the dashed blue line on the one minute chart. We can call it roughly the mean of the range prior to the open, but this to me became evident after price consolidated after we come back up from J. It is the 50% level of the down move, and the mean if this turns out to be a range. Traders are completing lots of transaction here, and we see price move equal amounts away from this mean.
K - We get to just below 24 again and stall. Two bars after the high have lower highs, so lets try for a short. We get back into the mean.
L - This is an interesting area. A short or long, above or below the 24 level once again can be taken.
M - Here, after a consolidation, I would think long again. We don't have much to stop us from going higher above us. It would trigger, but doesn't get far.
Ok.. enough. I wasn't exactly trying to trade today, shame, most of my calls were good. What I do feel is more confidence though. Having more reasons to take a trade based on price action around the outlined levels will help me put that trade on. Really going to run with it now!
