Trade the Monday Range
Hey there guys, Its been a while since I last charted... Im going to share a strategy i like to use for trading early in the week.
First we need to wait until Monday's range is established, preferably days with a wide range such as todays range (OCT 10th)
As of now, the Monday lows are holding and the H1 candles are painting a nice local bottom formation. Also we can see a possible H4 Swing Failure Pattern forming, that will act as confluence once the next candle closing adding to my confidence in this play.
In this scenario the trade is a Long, however if the daily range is established to the upside and we can notice a lack of follow through then we can use the daily highs to short to the midrange or the daily lows.
I built a nice long position at Monday lows, stop is below the local low at 18,935. First target is the midrange and second target is Monday Highs at 19,550.
Overall i think we are still in Chopvalley, however we are still in the range until proven otherwise, and a break and hold above Monday highs would lead me to become more bullish with targets from 20,500 to 21,500. In any case this won't be decided until the CPI numbers are released on Thursday.
First we need to wait until Monday's range is established, preferably days with a wide range such as todays range (OCT 10th)
As of now, the Monday lows are holding and the H1 candles are painting a nice local bottom formation. Also we can see a possible H4 Swing Failure Pattern forming, that will act as confluence once the next candle closing adding to my confidence in this play.
In this scenario the trade is a Long, however if the daily range is established to the upside and we can notice a lack of follow through then we can use the daily highs to short to the midrange or the daily lows.
I built a nice long position at Monday lows, stop is below the local low at 18,935. First target is the midrange and second target is Monday Highs at 19,550.
Overall i think we are still in Chopvalley, however we are still in the range until proven otherwise, and a break and hold above Monday highs would lead me to become more bullish with targets from 20,500 to 21,500. In any case this won't be decided until the CPI numbers are released on Thursday.
Comment:
Price got over the first resistance near 19,100 overnight. If we can hold as support we should test Midrange shortly, my TP got front ran on that move up and if 19100 doesn't hold I will cut my position quickly for a small gain.
Trade closed: stop reached:
My invalidation hit, however the trade quickly came back above monday range will be flat here until things clear up