Bears are trying to close the opening gap. That third bar is their first attempt on RTK's chart above. Lets look at the 24 hour chart now. Here is what the thing looks like on the 24 hr chart. I will widen the range boundaries after this post. You can see how it traded out of the range. I was going long right close to the open of RTK's. Price was at the bottom 1/3 of the range with a bull opening gap. So, I take my two trades and jump out. Price goes back up into the range.
Just see-sawing back on forth. Who will win? We don't know yet. Just waiting. This is typical range behavior. Back and forth. Overlapping bars. Not officially a range yet. Once it gets to 20 bars I call it a range. Sometimes I cheat and call it one around 15 bars or so. LOL
Ok I take a 3rd trade on a BO attempt of the sideways action. Will it be a successful BO? I don't know yet . I have to see some follow thru. Rationale: Opening gap up. Only two bull bars since the open Rest are bull excepts for opening bar and 6th bar that were a dojis. I am taking this trade betting it will at least go up for a scalp. Then I will see if it will be a successful BO with FT. At this point $425.00. This was a 1 contract straight scalp.
At this point not much FT on BO attempt. Rather a PB into the range. See why I don't follow this trade too far? Grab them profits! BO has not yet been confirmed with sufficient FT so a bit of risky trade but not too risky. This mat turn into a SPBL (small pullback bull trend) day. Just have to wait and see. Or we may start heading south. Either way I shall be ready. So far 3 trades. All winners. First averaged down 2 contract long. Second straight 1 contract short scalp. Third straight 1 contract long scalp. Now imagine if I were trading size. It would be time to quit and send momma to Dillards ..if they were open.....
Here is what those 3 trades look like on the 24 hr chart. I was not trading them off this chart but if I were I would have a fourth trade on already a short into the top 1/3 of the widened out range. I would have already exited it with a good scalp. That trade would have been entered right after I exited my third trade. It is hard to do live writeups showing both RTH's and 24 hr charts TAKE trades at the same time so I miss out on some but I just want to show a trader can trade from either chart. Just use different tactics. That is the way PA works. Mainly you are trying to see who has the upper hand. Bulls or bears. They cannot hide.
OK I took a 4th trade straight short 2 contract trade. Rationale: I took this trade off a 24 hour chart. Price was in the top 1/3. Previous BO attempt failed with no FT. On the 24 chart PA has been in a range a long time. We should get a BO probably pretty soon with FT but until I will fade BO attempts at the top limit of the range. See how you can trade off either chart. I was simply expecting a drop back into the range enough for a scalp. So, I short 2 contracts. That is the beauty of PA. Unfortunately that is disconcerting to some folks. They can't stand the uncertainty of not having "sure" setups. But see trading is operating in a fog. There will always be uncertainty simply because there are too many variables. And to many unknowable variables. So you just need to have a tool box of strategies and tactics to use on whatever is in front of your eyes at the moment on whatever chart you are looking at. At the moment up $600.00. I go tot stop trading as I have other things to do. Just remember the process is the same. Trading one or two or 3 contracts as well as trading 10 or 20. Of course with size risk is greater but so is profit, if successful. A trader can just sit there and trade all day long like this. It can get mentally tiring so probably best to not do that. But point is opportunity abounds for scalping. Lock in those profits. Don't get greedy. Keep a high win rate!
UH oh. just missed another great short at the top of the range while typing the previous post above. 24 hour chart. Do you see it? Tactic shorting BO attempts in top 1/3 of a range. Covering on any decent profit on a move towards the middle or even the bottom of the range. That opportunity was there to short again right after my 4th trade. Typing is costing me money!
Do you see the range behavior? Hallmark is confusion. If you "feel" confused about PA then you are likely in a range even if you can't "see" the range. Take a peek at another time frame of 24 hr chart as opposed to RTH's chart. The range will likely be there. Use range trading tactics. BO's will fail until one eventually does succeed with good FT. Range: Confusion Price races to top then to bottom Or price meanders around in middle to top or middle to bottom with overlapping bars Up then down. Repeat. Do you see it?
At this moment if you look at this 24 hr chart but from a 60 minute perspective the range is simply about a 10 bar bull flag. What does that tell you about potential BO direction? Well I gotta go eat breakfast then other things to do. Hope you see something here interesting. Bye for now. PS watch for that BO. Range could be an all day but if so there will be some sort of BO attempt that will succeed for abit.
I got other things to do but I will leave you to think about this below. I, in the past have read alot and bought alot of books concerning trading. I rarely buy one nowadays but I occasionally crack one open and take another peek. Here is what I read in one of them this morning: The Four Golden Rules Of Trading 1) cut your losses 2) let your profits run 3) trade with the trend 4) never average down your losing positions Do you agree with the 4 golden rules? I will try to post more on last Friday’s trades tonight. I want to explain a few more concepts. PS breakfast was good. Fried egg, bacon, orange juice and oatmeal. Now I gotta take some meds an vitamins. Bye for now.