Today the BO5 bull failed, In this pattern we expect price to pull back to the long BOT, and look for the range run for a break out of the opposite target, the short BOT, where BOT is the Break out target where one side is deemed stronger than the other. That struggle today created a range bound day, roughly +5 to -5 from the range.
5 minute ES
Price began low in the range unable to firmly break out bearish. Early news spiked price through the range and we began to see a resistance at 1518.75, and the short back to the open low. With this type of price action, the trends are harder to play (emotionally) with all the wicks and tails. One of the reasons for developing the BOT Range was to eliminate some of this emotion. "If this, then that" logic is behind the system. If the LB fails, we run the range, and so on.
To see the difference, look at the next trend that developed off bars 26 and 27. It actually started off a 50CB 45 degree line from bar 19. If you were nor "range run" long on bar 19, you should be able to decide after 4 and 5 hits of the trend line.
The next TL developed as the BO5 failed around 1524 and price fell below the EMA at bars 62-63. Another 4-5 touches that failed to break the trend. Action? The TL is suggesting strong bear bias. BOT action was saying the same...
No comments:
Post a Comment