TRADING WITH MARKETS, RANGES, AND 50CB'S

TODAY the bias was long, and we did see a test of the ES 1313.5 resistance.  But a bias is just that- a thought as to what the market should do.  Traders are always looking for the bias, but will keep an eye on the surprise move opposite of their bias.

That opposite move today was the failure to break the resistance, followed by a reversal break of the Long BOT (LB).  When we have a reversal, price is expected to move to the opposite BOT range.  In this case today, 1310 area to 1305.5 area.

In the middle of that move, we see a battle between the bulls and bears which established 50% Control Bar opportunities (50CB).  YM was moving with our trades, and TF was generally with us, but had more aggressive moves and was avoided today.

Our rules still apply:  trade with the markets (which often develops trends), trade the BOT ranges, trade the 50CB's, brackets, and BO's when they are identified.


click to enlarge

ES  YM  TF