NARROW RANGE PART 2

Go back and read yesterday's post, NARROW RANGE CHALLENGE.

Today was Narrow Range Part 2, and like many sequels, trading was a challenge and no doubt frustrated many traders.  The SILVER LINING:  market consolidation  bring break outs with very tradable extended trend runs.

The pre-market saw numerous extended wicks (top) and tails (bottom) creating whips that take out many stops.  The 5m was difficult to get a good read,  and shifted the room trading focus to the 3m and 512t.

 Combine this with a narrow range, we anticipated another tight, range trading day.  A day of quick entries, closely managed, with a preference for scalps until a trend extended beyond the tight range.


AM TRADES:

The first trade came on a CMA with CC.  Price was in and out of the MA Cluster, and spent much of the day in the cluster area on multiple charts.

The next two trades also used this clustering to extract a trade.  The first was CMA and the second was a MAXT.



PM TRADING:


The first trade was in a rising trend that was successfully challenging the MA's, and perhaps was the better trade of the day.

Later PM Trades were pullbacks to the clustered MA's. The objective was to find a stronger move that might be able to break that cluster similar to the previous trade.  It is clear now that the trend had shifted slightly to bearish, and shorting may have provided a better trade.  That said,  the entry on the move would be given a chance to work, but at the first sign of  failure, a quick exit would be taken.