EARLY BOTS CAPTURE BOTH MOVES

WITH the recent volatility in the market, the BOTs were calculated early.  Early enough to capture both tremendous moves in the market.

The Short BOT broke first.  News from Asia,  reports were flying that banks were holding credit to banks in France.  The sell off had a PB to the EMA/50CB area fail as a MAXT, with a retest of the LOD.

That same 50CB was a BO at the EMA for a long run to the SB.  By the open, we had a reversal of the SB, with a PB to the EMA that was reversed by another MAXT.  A reversal is expected to run from one BOT level to the opposite.  In this case, that was the Long BOT.  Price was supported by the EMA after the LB BO.

In both cases, the BOT ranges helped identify entries for extended runs.  When a BOT breaks, a trend is expected to develop.

Another point, when price consolidated (bars 265-270) we look for the break out direction.  We see the BO reverse  (BO was a reversal of the entry) rather than being a trend continuation BO.

BOTs are developed to analyze how the markets (professionals) are expected to "behave" when price hits key targets.  Add a few setups (i.e. 50CB, MAXT, etc.) and we have (opinion) an advantage in trading the markets.

ES

TF

NQ