A MARKET "IN BALANCE"

Occasionally the market will appear in balance, or in equilibrium.  Will it be bullish or bearish?  The early A.M. market showed a bullish trend running into a rectangle.  It further developed into a type of H & S, and

returned to the pre-channel level.  What developed next is what I referred to as market in balance, or equilibrium.  the short was established at 29.5 and the long was 29.75, a very tight balance between the bulls and bears.

TODAY:

Today, some of the quick bytes posted in the chat are included to identify where we have interest in placing orders.

[09:30] <Chartmaster> meaning:  no clear up/dn bias   stay out  or guess..  I pref the first
[09:30] <Chartmaster> however, if bulls fail the 50%  i go short

At the open, bar 1 (b1) tested the 50% level needed to convince traders that the market balance (MB) would first favor the bulls, and a long at 1330 b2 was a valid entry point.

The market then ran some +6 points and would be expected to test PA up to -6 from the EQ level identified.  A prior unfilled short at 29.5 was entered below b13 to hopefully collect some of that -6 expectation.  The same level was shorted a second time at b20 (hit b21) anticipated EMA failure.

The double bottom formation produced the next trade opportunity.  Note rising tails  b26-30 versus b16.

[11:56] <Chartmaster> 27 is a long area. 

The targets were 28 and 1329, however the trade was taken off at +1.  Rule:  when you have interruptions, take your trade off. 


[13:11] <Chartmaster> 30 becomes a shot entry

 With the conflict resolved, the pullback nature of b40-43  was an acceptable area to use a short.  Remember, we were looking at a balanced day.  Had this gone against us, the exit would be at 1332.25. 


[15:23] <Chartmaster> 29.5  has a ring to it..

It had been nice to us, go for it again.  Traders were entering at 29.5-29.25 for this short at b70-71.  Not sure of their reasoning, however this was a key price in the MB, and would continue to attract attention until the area failed.

A productive day, following a close range variance from a key focus point.

Finds us on Mirc Othernet at  #chartmaster.