The range data provided for the 6E and ES remained unchanged over night due to range bound PA. To read the 6E (or any chart) the ranges find 1- strong bull; 2- strong bear; and 3- a transition range that can be played long or short.
Traders will enter at the lower range if PA is showing strength. The thought is that the bear failed to sell. Entry can be via a bar or the EMA. Secondary entries are at the middle range and the upper (reverse action if bear run). Note PA will always break first. The logic for a strong bull/bear is the crossing of the EMA into the Upper or Lower trading Range. In this example today, the bull trend had developed from the lower range (about 90 ticks) and was still a strong long at the upper range- about 50-60 ticks.
THE ES
The ES had a double top in over night action ( pre US Open) and was in a bear trend reversal at the open after hitting the BO-5 and nearly the BO-10 level. Those DT's were at the mid range, forecasting a range bound day at best, or bull sell off day at worst (only for equities and longs).
The focus of these post have changed to direct your attention to key levels, key PA that is of interest. I do not list (although guilty in the past) the + of the trade(s) as each trader will have different results. Some hold for ticks. some points. Some trade bar signals/set ups. The important thing is to look for the reasons to trade /exit. Nothing else is important. You will develop your own needs with each trade.
In a strong trend, the TL can offer entries you should practice/execute. Those came near B6 and B13 today. For an Rth trader, it would be a lower high for B13. The TL was seen with global chart, thus the preference at the open.
A reversal long began a bull run ending in a flag pattern followed by a descending triangle, all near/at that bear TL.
The failure to return into the range at the descending triangle was a good lead in for the PA cross of the EMA and bear TL for another BO-5 to BO-10 run.
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