The day started with a play on the initial LB break out. The stop was moved into profit and we waited for the run to develop. It failed, and PA hit the stop. It was covered and explained in our chat room.
The play is common; look for the BO run and if it fails your out with a limited risk. This brings us to point 2: when a BOT fails, look for a range run to the opposite level.
The plays are establish ahead of the PA for the market;
- A BOT BO is expected to run for a minimum of 5 points
- A FBO, look for a run to the opposite level
- A BO that fails between the BOT and the BO5 or fails at the BO5 area will be expected to reverse, run the range, and BO to a +5 at the opposite level.
Today was BOT PERFECT: PA was a FBO with a range run to the opposite level in the pre open. News interrupted the sellers for a range run back to the LB where we see FBO number 2.
A range run back to the SB, but this time we were expecting a BO to +5 points as sellers continued the pre open move. Add two hours of static PA at the BO5 level, and a late PM run we announced back to 1426. Day done. Week done.
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