This is a great example of (1) trading against acceptance and (2) using the wrong strategy. On Mon 26th Nov, the market had moved through all my RES levels and at the futures open it got above R2 and stayed there. The futures range was only 30pts but the point was – no one was selling the market – there weren’t new buyers either but price had accepted up here, it was happy there.
Plus don’t trade against a big move while it’s consolidating – this needs a push up and a 3min Bolli – definitely don’t do it when it’s accepted above a level.
Trades that do work in this PA are breaks, but you need to wait for a move outside the range, rather than to trade inside it. In this case the break of the futures range was a 6p pt trade.
For the Imp/Corr sequence trade to work, you need the market to be trending. This trade setup in response to the impulsive buying at the open,
Especially with such an extended market, you want to be getting long but you don’t want to hang around with full risk exposed as a reversal can occur at any minute. The best strategy is therefore to take longs at each Imp/Corr and J-Lo sequence, get 70% off at 1:1 and leave runners. That way you cab
