Might be the best move of the day is over.
/tf -- bottomed out 5 AM -- ran 70t to VPOC on 5 min chart -- double topped at 771
/cl had an even bigger move 160t -- 5:15 am bottom to VPOC area at 87. now long tails up here.
/tf entry signal was a 6:15 AM.
/tf 763 - testing lows of yesterday -- some IBD names green XHB green -- may be testing.
holding /tf for a key target is necessary or you won't pay for the losers.
In a choppy day -- like most opex fridays -- early entry is better. Use 5/9 xover at the edges. Chances are the moves are smaller so need to enter closer to the pivot.
/cl takes out stops -- entry was 5/9 xover -- broke downtrend then backtested to 34 MA - which created the bowl shape.
shorted /cl on 5/9 xover after stops taken out on 5 min chart -- near high, covered at 99 MA test -- for 35 ticks. Very simple trade.
the 5/9 xover will only work well in a rangebound condition. Market Signals are clearly weak so this was a great risk to short an extended /cl
I should not have covered at 99 ma -- let a trailing stop ride it down. Winners must run as long as possible.
Now a Trend UP day -- so rules switch to wedge breakouts on every pullback to 34 or 99 MA.
possible trend up day rules: if /zb red, /6e green, advn-decn over 500, indices up. IBD leader board mostly green -- auto Trend Up.
/tf from 760.50 to 771 on the bounce. resting above 34 MA, 99 MA fanned out -- Trend Up look.
a fade will require a very clear triple topping wedge. Market Signals are strong.
/tf -- been over 1 hour since the rally -- 5/34 xover short signal? Should you take this with such strong market signals? Obey patterns/charts or Market Signals trump? (By the time Market Signals turn -- it will be too late)
IWM 77 and bounce -- OPEX pinning -- so basically - the best opportunities are over for today.
wide chop but 770.80 still -- so correct to avoid -- no real opportunity now for trend.
Market Signals on Trend Up -- probably some people trying to short this close -- going into holiday week... deeply oversold. Why not just follow Signals and follow the trend?
774 /tf -- resistance on 15 min. chart. high of day -- Trend Up Signals provide the direction.
MAJOR PUKE 15:45 -- usually a top signal. gravestone doji.
Triple Tail Top -- near end of day -- really see no way market can climb higher. But Trend Up Day is hard to short -- won't drop.
Recognizing a trend up day (in this case Massive Short Covering, but to the same result) is 90% of the game -- it determines the kind of trades that will work. Entering b/o's after pullbacks works.
crazy day -- but charts were charts. Just gotta be mechanical every day in your rules.