Updated: Mar 13
Day’s Theme: A prominent move to the upside followed by a full retracement of that move back down.
Behavior Around the High: A decline through multiple support levels.
Behavior Around the Low: There’s a new local high within close time proximity to the day’s low.
I’m advised to trade around a notable move to the upside out of oversold territory.
A trade opportunity to open a long position in the midst of a decline in the pre-market.
On April 14th, there’s a decline in the pre-market that offers an opportunity to open a long position. That’s followed by a pretty big move to reach a resistance level around the open. We’ll move into an overbought crest in the first hour and a half. From that crest we’ll decline pretty notably through a support level to meet a second support level and then rotate sideways along that support.
There’s a bit of volatility and a fast, sudden move higher marking the end of that period of volatility somewhere around 11:00 a.m. to noon. We’ll then decline through a support level after that fast, sudden move higher. That decline will take us into a prominent trough or low for the day in the early afternoon. Out of that trough, there’s a notable move to the upside standing out on a one-day chart. There’s a crest in the midst of some erratic behavior back and forth through the same price level in the last hour. There’s an opportunity to open a short position when we reach that crest. I’m advised to be cautious around the close. There’s a prominent trough either in the post-market or in the following day.
On the 17th, there’s a decline in the pre-market. That’s followed by a notable move to the upside to the top of a range.