12 Nov – TL finally breaks… for 270 pts
12 November 2018
16 Nov – Breaks to the downside (again) and then recovers (again)
16 November 2018Pre-open Scenarios
The corrective action continues and just like the last sequence, the market is breaking the TL that supports the corrective action, then making an impulse move which prompts a strong reaction on the upside. After the 270pts decline on 12th Nov, by yesterday it had retrace more than 74.6% of the move.
Today the cash chart weekly 200MA was in play, along with the new lower TL that was containing the most recent corrective gains. The are between these two lines is the neutral zone and is shown in lilac on the chart above.
This is what the market looked like by the close of play.
Strategy for today’s PA
The market moved straight off yesterday’s close at the futures open and went straight for the weekly 200MA.
3Min Bolli and 1Min TL Break
This gave two love trading opportunities: a 3Min Bolli set up as the level hit (the first failed) and then a 1Min TL break as the reversed started to look more convincing. This trade idea was supported by the bear pin bars that formed once the TL broke.
These trades achieved entries very close to the high of the day. This chart show how the 3Min Bolli system worked throughout the day, when used with my levels.
During the afternoon session the corrective TL broke for around 100pts. Again, we saw a fast move followed by a retrace to nearly retest the underside of the line and then a sharp move down followed by a complete retrace as the market regained the TL.
What I did
08:12 Sell x 74 @ 11489 for 3Min Bolli| P&L = -1R
08:20 Sell x 71@ 11497 for 3Min Bolli| P&L = +1.6R
08:26 Sell x 78 @ 11488 for M1 TL break| P&L = +2.4R
15:54 Sell x 23 @ 11380 for H1 TL break| P&L = +1.3R
TOTAL = 4.3 R
Today’s most gorgeous setup
The 3Min Bolli set up as the market hit the cash chart weekly 200MA,
