This bad girl (Goldilocks) is getting ready to fly. Per our past posts we had been leaning long and carried a small position for the last 2 weeks. We have exited that position because this coil is getting tighter. We are expecting her to explode soon and we expect a large move. We are watching for a trigger on a lower time frame and will join in when a level breaks. This is as low as the fruit will ever hang! Trade well.
Hi Glenn...great question. The bottom area has been tested three times and could even create a zone from the 1271-1278 area. There's a lot of stops sitting below this area. We are expecting a break to the upside and if it were to test the 1274 area (lower green line) then the big boys will run stops and we will most likely see a quick flush. So we will not draw from the tops of the shadows on the low side and instead create a zone. When price enters the zone we will look for a trigger to get involved. Remember there is no right or wrong way to draw/mark up your chart...just control your risk and take the trades. If we get in and get stopped no big deal, we are off to the next trade. There is one caveat...know your trades. Define them...know your time frame...write them down...understand your risk and stalk YOUR trades. Don't make things up and "think" you see a trade. We understand what we are looking at. We use patterns and a couple indicators (custom) to help us find trades. GC1! was very very good to us last year and this year we've had one monster trade (in Goldilocks). We have been stalking this trade (amongst others) and we are expecting a big move. Trade well!
Thar she blows...The bears won this battle and we are short (see reply to Glenn below). We are expecting a fairly large move so we will trim and trail on the way down. One key to successful trading is to push the trade as far as you can. It's hard to do but most take profits way to early and never see the full potential. If we get a quick reversal we will stop out and wait for another signal.