It's Tuesday morning here in London, about 5.30am. I'm looking at the overnight markets to envision what may happen today. In the ES, price made a new low (1332.25) after the RTH close but rejected those lows, failing to touch my FavFib area. In the more than 7 hours since then, the market has held the strengthening prices. Currently we are trading at 1337.25.
My thoughts are that we should trade in a small range between yesterday's RTH close and, say, the top of yesterday's VA at 1343ish. If we make a new low then we will try and find support at 1310 and then 1290. Both those numbers seem too far away. The market action yesterday did not show any real panic and I would not feel surprised if we rallied out of here. I'll continue writing this later today as the scene unfolds.
We dipped down again, but the low was rejected again. I traded what I saw as you can see from the pictures.
Hey EL, Do you count the first trade when you double down as a win or a loss, what about scratched trades? e.g. I sold the Around the 33 EMA and then I doubled down where you went short at the second Red Arrow and scratched the first trade + 1 tick.
ReplyDeleteHi EL,
ReplyDeleteDo you still use the Keltner Channel?
Hersh, doubled down trades are calculated as one trade. "A scratch trade is a winning trade" as we said on the floor.
ReplyDeleteAnon 18:45, Yes, the Keltner is a great target. I "see" where it is in my head so don't need to put it on the charts. I'm trying to have less cluttered charts.