Wednesday, December 22, 2010

Another soft trend/glacier day

Today's open very close to close of yesterday should have cautioned traders about a possible repeat grind day. The failed 1t L1 on bar 2 and L2 on bar 4 confirmed today's price action prognosis.

Every failed L2 could be bought. b32 was a rare A2 long but it was a horizontal flag signaling a possible final flag. The possible W and W1P short entries at bars b38 and b42 were dangerous and are not to be taken given the terrible risk/reward ratio.

A deep pullback to b52 provided the first deep pullback of the day and was the easiest trade of the day. Aggressive traders probably also bought the b76 A2 into the close.

All in all, today was a long only day with bars that were only a few ticks long. Buying on limit expecting an L2 to fail worked every time today except the obvious b43.

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