T3 – Trading-The-Trend Market Recap & Outlook
The Market Big Picture
Good trading is always going back over the trading WEEK and taking a step back to see where the market is situated. This allows for a higher probability on an intraday setup knowing that overall market direction is in a particular TREND. It’s your patience and discipline that will continue to grow as a trader when you implement such tools.
Looking at the week behind…..
Welcome 2016 with a roar to the shorts. With Chinese markets in the news and circuit breakers halting trading and then 2 days later having them removed, made for a wild ride down. All attempts by the US markets to rally this week were simply fruitless as the market closed out three open gaps to the downside from 10.05.2015. An article that I previously wrote posted here.
Looking at the week ahead…..
With unfinished business being closed out to the downside, it makes for 51 more weeks of pure unknown but eventually the probability of moving back to the upside greater. My long positions will thank me.
Look for the swing position charts (50-100 range; 4 hour) to be the first to change trend followed by the intraday 50/144ema on a 1 minute. Once the intraday and swing position is in trend to the upside, open gaps above will be closed and eventually the lower time frames will swing the larger time frames back to the upside. Caution as low side open gaps and open points of control still remain.
Until then, always ready in both directions.
One Simple Strategy. ANY market. ANY chart. ANY time frame.
e-Manual available on teaching this trading strategy and live trading room/screenshare.