The Zone-Trader Philosophy intuitive based trading methodology setup 2 text book trades that created the swing from the short yesterday being signaled on the Weekly Profile to the Buy Reversal today which was setup on the Monthly Profile.
The Monthly Profile had made a bullish breakout yesterday got the candle body close above the midpoint between MR1 and MR2, which tells us to buy the first retrace Rule 1. Once the Bullish Breakout is established it is like a footprint in the market. The footprint being stamped creates the ability for the market to retrace since the breakout has already been established and the market will take one more leg up on the Monthly Profile.
The Weekly Profile was generating Rule 2 a failed Bullish Breakout no candle body close above the midpoint between MR1 and MR2 and the Bears are in control of the market on the week since it opened below the PZ depicted by the 2 orange lines. The bears looked to be maintaining control of the market and with the Rule 2 trigger the alignment between the Control Bias and the Directional Bias was established which increases the probability of winning. This suggested that the Monthly will most likely go into a retrace phase after making the Bullish Breakout. So we sell and take the entry provided by Rule 2 and expect the ESH13 to revert to the Zone-Trader Pivot in White at 1503. We then expect support to start kicking in between that price level and the Zone-Trader Pivot on the Monthly at 1500.50.
So we put a reversal buy limit at 1503.50 to take profits on our shorts and get us long to catch the second wave on the Monthly Profile which is the Bullish Trend Confirmation Wave. Also bulls are in control of the market on the month so we again have alignment between the Directional and Control Bias. We are currently still long and holding with stop at 1513.75.
Zone-Trader Philosophy like taking candy from a baby.
Beautiful Swing trade setup by the Weekly and Monthly Profiles. Can't get much more textbook or accurate then that.
www.derivativeconceptsinc.com
http://www.liquidnitrogenoverclocking.com/partner_id_008_high_speed_trading_servers.shtml
The Monthly Profile had made a bullish breakout yesterday got the candle body close above the midpoint between MR1 and MR2, which tells us to buy the first retrace Rule 1. Once the Bullish Breakout is established it is like a footprint in the market. The footprint being stamped creates the ability for the market to retrace since the breakout has already been established and the market will take one more leg up on the Monthly Profile.
The Weekly Profile was generating Rule 2 a failed Bullish Breakout no candle body close above the midpoint between MR1 and MR2 and the Bears are in control of the market on the week since it opened below the PZ depicted by the 2 orange lines. The bears looked to be maintaining control of the market and with the Rule 2 trigger the alignment between the Control Bias and the Directional Bias was established which increases the probability of winning. This suggested that the Monthly will most likely go into a retrace phase after making the Bullish Breakout. So we sell and take the entry provided by Rule 2 and expect the ESH13 to revert to the Zone-Trader Pivot in White at 1503. We then expect support to start kicking in between that price level and the Zone-Trader Pivot on the Monthly at 1500.50.
So we put a reversal buy limit at 1503.50 to take profits on our shorts and get us long to catch the second wave on the Monthly Profile which is the Bullish Trend Confirmation Wave. Also bulls are in control of the market on the month so we again have alignment between the Directional and Control Bias. We are currently still long and holding with stop at 1513.75.
Zone-Trader Philosophy like taking candy from a baby.
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www.derivativeconceptsinc.com
http://www.liquidnitrogenoverclocking.com/partner_id_008_high_speed_trading_servers.shtml
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