
Tuesday - A little tricky, but rules held firm. Still in the same sideways movement from the past 6 or so sessions, between around 1258 and 1274.
Checklist:
- Today's Target Size: 2pts
- Gap Filled? Yes. (eventually)
- POC Hit? No (1261.25)
- Wednesday's Gap Fill: 1270.50
Based on the chart above:
- WORKED: Long R1, Due to the setup happening within the first 30min, it made this long valid. Very tricky, since it chopped sideways back and forth through R1, but eventually hit the 2pt target and then up to R2.
- WORKED: Short R2. Now that we were out of the first 30min, we were back to shorting toward the pivot. After going 7T into profit with a 8T target, it was difficult to not get trailed out with a break even. Due to this move down not breaking any past swing lows, it made re-entry on R2 very risky (2b). However, hanging tough and putting your stop right outside R2 paid off, as it fell like a rock. The fact that R2 was right at the top of the recent high we've seen the past 6+ sessions, made this short feel safer.
- WORKED: Short R1, we were not interested in taking a long off R1, but only a short. This required waiting for two 5min bars to close below the level and entering on a re-test. We got just that at #3, which hit the target and the gap fill.
- WORKED: Short R1 again, due to us making new lows for the day and breaking previous swing lows, made this short valid. Plus, the fact it was late in the day and this setup was in the direction of the PP, helped as well. Unfortunately, it went 7T and not quite to the 8T target, so it didn't amount to a very large win, as your trail would've been hit... but positive none-the-less.
As with unfilled gaps, when a POC isn't hit (leaving a "Naked POC"), there's a good chance it will be hit tomorrow. Keep an eye out for 1261.25 tomorrow.
Good hunting traders!
neoEminiStrategy