23 Nov – ranging day that closed higher to fit with Black Friday tradition

I was not trading today. I was doing massage practice and drawing instead. On Monday trading begins again.

Cash chart

Black Friday is traditionally seen as bullish for markets. The pink TL is key and if the market gets above that and likes it there, we will probably see a longer corrective move up.

H1 pre-open

So the Neutral Zone today was bounded by the pink TL and R2 on the upside and the lower TL that formed from the higher low after Monday’s low. Monday’s low is a KSP (key swing point, circled in pink). Yesterday was weak and ON was weak too, so let’s see whether the Black Friday bullish tradition will play out. 

The day’s PA – M5 Chart

Which setups worked?

Since we had ranging action, the 3Min Bolli should have been the winning strategy today .. and it was. Here are four 3Min Bolli trades on during the first few hours of the session.

From left to right:

• Buy my SUP 1 with y’day low just below it during the Futures session
• Sell the 169 on the 3Min – this was not such an easy trade as you could have easily been stopped by the spike to 11161 at the open – but since this was the pivot, it is logical to use SL above it – even better would be to sell the pivot at the cash open if you were fast enough.
• Sell Weekly S1 – this trade has worked all week and did so again today, but it needed to be traded a quick grab rather than a larger move. In this case, the Pivot below provided the perfect TP.
  
• Sell the fin above RES 2 (RES 1 was not hit while outside the 3Min Bolli). 
• Sell the break of compression at the confluence around 11200 – the sequence lower highs and the confluence above gave a good indication that this trade would work. 
  

With all the confluence at this level, it would have been very tempting to enter this trade at CBL, but there was no setup there because price was still within the Bolli bands. With CBOL at 11195, BNR at 11200 (RES 2) and Fib at 11207, the trade was very high probability but you had to wait for the proper set up and that patience paid hansomly.

This is easy in hindsight but to identify whether we’re in ranging or trending PA takes some PA reading skill. Here’s a post on how to identify PA early in the day – Ranging PA and how to identify it early in the session –  and how to know when to switch strategies.

How the cash chart looked at the end of day

The daily chart has been compressing over the last few sessions, so next week we will be looking for a breakout of the bounding TLs.