SETUPS AFTER THE BOT BO, PART 3

ANOTHER day with the webinar, so discussions here will be brief.  The last two blog post have been about setups after the BOT BO.  Today was another BOT break day, but the trade opportunities actually began before the US Open.

[08:22] <Chartmaster> this is great  day over before the other chatters wake up

ES:

click to enlarge

The market had a nice EMA push around 6:45 EST (all times are Eastern Std.) and moved into a consolidation.  We have discussed this numerous times.  Price entering a consolidation is expected to continue the entering direction-trend continuation.  The plan is to wait for the BO bar, and follow that direction with your order.  The consolidation BO is at the Long BOT, which was our long entry.  When a BOT has a BO, a trend is expected, and we are looking for a +5 +10 movement.  That first order provided the +5 and a +6.5.

[08:52] <Chartmaster> thinkg push can have weakness at the open  (as) some selling draws in traders  then reverse on them

The scenario for the market open was as follows:  should see some selling to draw in traders and market reverses to take them out.  The target was around 1325, to provide a nice value for a long entry.  The last pre-open and B1 and B2 did provide some selling as thought, but not the depth.  B3 was the reversal and set the tone for the day.

We like the second push and expect it to be stronger.  The plan is to wait for the PB, then enter.  The PB came with the IB.  An IB is an "inside body" and can be, or not be an inside bar.  The setup only requires the body to be inside the prior wick or tail.  It is considered a reversal for an exhausted market run, or is a PB signal in a strong (early or junior) trend.  This was the PB version and our setup for additional longs for +2 and +2.5.

The bearish flag from the b12 area had a BO halted by a MAXT reversal signal, but there was the strong support below at the 50CB which was not broken on the prior attempt at b26-30.  An important area remains important for the day.

B34 and 35 are a gap L reversal that is Long, playable with the 50CB support and a new 50CB stop.  Day is done.  Bracket the consolidation for a BO, but  the EMA is flat and no need to waste a good day.




TF:

Our webinar chart focus is upon the TF and ES, with smaller versions for the NQ and YM.  Trading is simplified by:

1. Play the BOT BO
2. If the BO fails, play the reversal
3. Play with the markets.  We like bull/bear moves in all the market to support our with market order.  If all are moving, the professionals are with us, not against.

TF similar to ES today.  Play the BO at the BOT, actual order was top of the two bear bars (approx. top of bull BO bar) for a pre-open +3.

[08:42] <Chartmaster> still fav tf+5 835

Three bar PB at the open, and the reversal long.