The Break Out Targets (BOT) are calculated to capture rotations in the market: bull to bear, bear to bull. The BO of a BOT is believed to provide five to ten points plus. A FBO of the BOT that moves back inside the ranges is called a BOT Reversal, and is anticipated to run to the opposite range.
A mirror trend continuation is where the PA enters the range from a BOT level, stalls at the middle BOT, then pushes through the opposite BOT. From this second BOT BO there will be an initial PB to the MB again, followed by the TC to a higher/lower point beyond the second BOT BO.
The ES opened (for our trading) after the BOTs were calculated with profit moves on the SBBO. A MAXT developed, and the reversal ran to the opposite BOT level. MAXT's are exhausted signals that will be a PB variety or a true reversal. Both are playable as scalps, the latter as a scalp and runner.
The FBO of the LB (if 2.5 points is a failure) reversed. The short reversal was called in the room, and we see a major sell off to establish a new LOD. B6 and B7 were both 50CB bars. The 50CB will break(your entry) or we will see 1-3 bars fail to break the 50CB and this becomes your TC entry.
We will often see a MAXT reverse (or PB) run to a prior 50CB. The reversal will stall, then push to higher 50CB's. The PB variety will fail at the 50CB and a better TC entry is available.
On news day, the market pro's created a "net neutral" market approximately +10 below and above the LB, and settled around the LB until the FMOC information was released.
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