WE stayed in the range for ANOTHER day. Price is consolidating and we simple have not had a break to move from the 1513-1521 zone. In the Euro Zone, price was rising toward the break out 5 level. This is a point five point into the bull zone, which is above the long Break Out Target (LB). The LB and SB are simply an area where the bull/bear is deemed to be dominant.
At the US open we had a reversal break out at the BO-5 and our first trend line. As we discussed in yesterday's blog, trend lines added to the range helps fine tune the entry-exit of a trade. For TL trades, a break of the TL is generally regarded as the exit in the absence of other data. Other data could include an exhausted run which is of interest in the 2 to 2.5 points range around a level.
The Bar 8 shorter took price to around 1519 off the reversal bar and the TL break. The long target here was the 1521 which we felt would see at least one more hit.
Shorts again, and follow the trend to around 1518, then enter again on the second leg of the bear and a failed push to the EMA. The target was 1516, the LB level. Part of the BOT philosophy is that a failed break of a level (today BO-5 at 1521) will run to the opposite level (1516 today).
Price bounced but flashed new shorting around B54 and established a lower high, and a gap between price and the upper level (1521). This is deemed bearish in nature. A quick scalp to the EMA was followed by a range run short back to the SB level (1512.75).
Another nice day for the range and trend lines.
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