Friday, July 29, 2011

PRE OPEN LOWS MATCHED

We had a very nice Control Bar at 8:30 AM EST, and it remained good until late in the PM US trading.  The upper BOT on ES was broke, and soon developed a MAXT, and MAXT's were seen in the other financials too.

A MAXT trade in a strong up trend will often be a PB rather than a reversal.  We see the MAXT later was a short that worked much better as it was in a declining trend.

Generally, you look for a PB in the next 1-2 candles in the MAXT, to about 50% of the MAXT candles, prior to the reversing effect.  If in a strong declining trend, the MAXT may not have a PB candle for the entry.  In those cases, look for the first PB after the MAXT for a potential entry.

Here are some pic from today.  The comments tonight are short;  we are trading the after hours to test AH BOTS for swing trades- PA move from one BOT level to another.







The channels we were watching.  Long until we see a BO.








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