Monday, December 13, 2010

Trading range day

What looked like a promising trend day after strong signal and entry bars turned to a small range day pretty quickly. The first reversal often looks terrible, but will turn around and test the high of the day. b16 broke above the HOD and gave a possible breakout failure (BF) on bar 25, however there was very little follow through on the lunch hour. The triangle consolidation broke into an expanding triangle on b52, which led to a second attempt to break above the HOD. When the second attempt failed, the market quickly dropped.

Generally TR failures give a measured move of the range size, so we should expect the price to hit 1228 or so overnight or tomorrow.

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