Concur. 1455 was roughly the LOD for 7/27, 7/30 and 7/31, so it's a good candidate for strong resistance today. The next level above that that I'm looking at is 1465, which was LOD on 8/2. 8/3 was the "outside day to end all outside days" which totally engulfed the two preceding days' ranges. If the test of 1455 fails, possible support levels include 1442, 1433, and 1425-6. If we break below 1425, I see nothing but air down to 1402 (fib 138%) or 1391 (Feb-Mar low). Current price action looks very nice, so holding my long for the test of 1455. Sell stop just raised again to 1446.
At 5:15 ET, finally broke out of hour-long bull flag to the upside, now running stops above 1449. My long from 1539.25 is now +10.5 points, holding for another 5 points for test of resistance at 1555. Protective sell stop now raised again to 1447.75. Will look to go short at 1555 unless we blow right through, in which case next stop is 1565 or so.
Closed out this long at 1451.75 for +12.50. Next looking to go short from about 1455 if reversal is confirmed. 1454.00 may well turn out to have been the top here, so looking for possible short entry on any pull-up towards that level.
At 7:36 ET S 1453.00 BS 1454.75 (1.75 points) PT1 1440 (+13 to close the gap) PT2 1426 (+27 to major support) EDIT: At 7:55 ET last paint 1449.00 (+4) lowered BS to breakeven
THEORY PRACTICE I used Osorico's original quote because I (along with a few other folks) hadn't quite figured-out what he was getting at, and apex82 gives us a real-time example, with real money, while describing the parameters of the trade. Low(er than 50%) win rate, extraordinarly high profit. Something to work on. Good trading, Jimmy Jam