I took the first one of these long setups – this turned out to be the perfect place to add to a short using the impulsive-corrective structure. But I left the others. The failure of these levels is the definition of a trending market. and it was: from the closing gap fill to the cash chart 50MA the market fell 100pts.
On the first example at RES 2, the 3Min Bolli fails but this gives atext book short setup instead; at RES 2 there is a reaction but its too small to trade – although the fib below sees a tradeable reaction – but overall, the failure of KLs to stop the market indicated that there was more downside to come.RES 1 was the correctlevel though, as it turned out to be the perfect level to fade once the market had definitively turned down.
