Monday, 21 November 2011

I Just Love The Opens

The open of a market is a great opportunity if you have structure built into your methodology. The centre of my universe is the 33 EMA and it represents the fair price at any one point in time. It acts like a support and resistance.

The overnight ES had established lower value by the time that Eurex was ready to open. I had the VAL of Friday on my mind before the DAX open. The market opened gap down and I was looking at that VAL and the 33 EMA. Surprise, surprise, the two coincided. The Renko chart shows the action very nicely. I sold every pullback and was finished for the morning after a couple of hours. It doesn't get much easier than this.

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