Sorry Clint, it occurs in trading too. Good, great, boring, bad, and just plain ugly. To understand the US Market today we must look back at the Euro Zone trading. Last evening we were shorting 15.75. Going into the Euro Zone Open PA was declining again when a strong buy signal hit, and it was a PA gap to the SB.
Nice run to break the LB ending in a short signal which also formed a DT. The next short advantage was the BO of the 50CB at the double top. This bullish TL ran into the US Open.
This is what would be considered the good and the great! A FBO that did not hit the LB BO-5 level tends to run the range to the opposite target.
The bad and ugly? See the US market today for the ES. PA struggled to break the B1 range, and was clinging to the SB. The bear channel (TL) continued, and there will always be traders that enter at/near the high and low of the channel. B20 was the first entry in this market. A long back to the SB/TL resistance followed by a second entry at B29. PA ran back into the B1 range and failed for a nice short. A double bottom buy signal hit for a long back to the B1 range.
The last play was a bracket type. When PA is consolidating a BO will occur (eventually) and traders will bracket the consolidation. The attempt is to place the order outside the PA thrashing that will eat your lunch. I prefer to play the break of these targets. The upper hit, but no break. The lower produced a +1 EOD trade, while others held for the BO-5 target.
The Ugly for most of the US Market was a narrow range of trading around the SB magnet. There is nothing wrong with staying out of this action; wait for the good and great. I would suggest you practice the trades. This action is reminiscent of slow summer trading with narrow ranges. A 3-4 point range is difficult to master, but you still need it to weather those extended periods that test every one's patience.
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