HOW TO USE THE BOTS

Today's action was a good example of using the break out targets (BOTS).  We use them:

1. to quickly gauge the market direction and bias.
2. to establish trade entries with the trend.
3. to enter a contra trade, but  one that has a higher probability of expanding into the new trend.
4. to quickly spot if all markets have a new or revived influx of  activity that begins buying or selling modes.

Number 1 is used to keep our focus upon the direction and bias of the market, with the intent of entering with trend trades.  A break of a BOT is favorable, and considered with trend.  The initial order can be (varies with the instrument) at the BOT, if you are willing to allow for a potential failed break out, or more conservatively at the first PB after the cross.  A failure is likely to reverse, and offers a contra play  which is deemed to be a higher quality CT as opposed to a PB between two or more legs of a trend.

At times, the markets can appear to move at the same  time as buyers and sellers enter.  This event host of factors could be from program trading, support/resistance traders, key levels, etc. If  some (or all) the markets begin moving at the same general bar or time period, it is used to evaluate an entry.  If this occurs at or near a BOT, the significant is higher.



TODAY:  YM  ES NQ  6E

Today the charts are presented for you to review and  make personal notes about price action at/near the BOTS.  The values are found on the BOT page and applied in pre-open for the US market.  Review the charts for BO, FBO, reversals,  and support and resistance at the target levels.

click to enlarge