Not a correction, exactly. For the most part, the reason for drawing the mean in the first place is to verify the accuracy of the limits, though the mean, if accurate, can also offer good trading opportunities, at least in real time. If the mean and the limits can't align, then something's wrong.
I apologize for not posting I am on vacation and though I swore I wouldn't look at the market I failed , just a quick chart good trading.
Well that may be the last vacation I take ! I wouldn't have believed I could slide back into so many bad habits, at the same time! I thought I was making progress, at least on the simulator but it all went out the window and today just emphasized it. I can't remember a better day to just let SLA do its job, the mean was talking loud and clear. By 9:45 I was microtrading a 15 sec chart. This is not a question of knowledge, its more a lack of discipline. Ok enough whining, going back to observation tomorrow and Friday. Congratulations to those who did well today
After sleeping on this, things aren't as bad as it seemed yesterday. I have been struggling to find a TC that fit and wasn't getting anywhere, coupled with trying to get SLA and AMT to work together and I wasn't ready to trade, still trying to fit the pieces together. Price is at the LL of the channel and we have HHs and HLs on the 5 min, price trading up to the mean isn't out of the question. If price trades below 3447, we may see 3410.
Monday, Price still looks OB on the daily chart. The 60 min is showing bulls coming back with a little more purpose. with price breaking both the SL and trading above the LSHs. An advance to the 3510-20 area doesn't look out of the question. 3512 is also the MP of the 3430-3600 range. I will be looking for longs until price shows differently.
Didn't unfold the way I pictured but I didn't have that strong a bias just a picture in my mind. I did have a bullish bias though and after Price traded back down to 46 after the open price did turn north and at the time of this posting is at 3480. Had a much better day watching the PA, I didn't try to outthink the market, just drew lines and followed price. well for the most part. I don't understand my reluctance or inability to follow the plan, but I have narrowed it down to discipline as my #1 enemy. I think I got in trouble trying to assimilate the SLA with AMT and the next thing I knew I was lost ended last week microtrading for ticks. I have gone back to simple, follow the plan as written don't shoot from the hip because I "feel" something. I have one weakness ( well more than one but...) and its causing me problems, is scratching after entry. I am going to spend the week working on this. I am also going to start posting charts after the days trading showing actual entries and exits. ( The attached chart was marked after trading )
Not much has changed in the bigger picture buyers pushed price up sellers pushed back down result a hinge for now anyway. buyers may still test the mean at 3500 or 3580 possibly if they can get a head of steam going. If sellers have their way 3408 is a possible target