Consider looking for trades based on where ES is relative to the 9:30 ET US equities session opening time. Attached below is a chart where the open is marked and a price threshold of +/- 3.00 points applied:
how do u play that, could u throw some details. my charts have few lines running from the past not sure where to base my trades.
R10 at 67,00. Main hypothesis for the rest of the day is still that the LOD is set and that we can see a move up towards 78 by the closing bell. I'm sure the week low is not in yet - but I think that will have to wait for tomorrow? Or what say ye? Of course there's a chance that we'll drop like a turd from here as well. Just not my main scenario now...
Using today as an example, I will consider consider sentiment as measured by correlated assets and relative performance of assets that are adjusted by risk attributes. I will use this information to help me decide how aggressive I want to be in entering a position. Most aggressive would be to enter either at the open or when a opening threshold is breached. Less aggressive would be to enter on a countertrend bar, or for this morning, a 5 minute up bar. My least aggressive entry would be to enter on a test of the open, waiting for a 2 bar consolidation, or a test of a resistance point. Again, how aggressive my entries are depends on my perception of current investor risk tolerance based on relative performance of correlated assets. Edit: As a specific example, for today my signal was to short the lower opening threshold and to use the upper threshold for a 6 point stop. My initial exit would be either at a recent support or the close of a 5 minute wide range bar.