Day’s Theme: A notable decline off of a peak.
Behavior Around the High: A sideways-fluctuating decline that precedes a rally.
Behavior Around the Low: The establishment of support and then a big move higher standing out on a one-day chart.
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I’m advised to trade around a notable decline offering an opportunity to open a long position.
An opportunity to open a long position first thing in the morning that you could close around 1:00.
An opportunity to open a short position at a rally out of a trough in the morning.
Overview
On October 4, there’s an opportunity to open a long position first thing in the morning. You could close that around 1:00. There’s a rally out of a trough as well that offers an opportunity to open a short position. I would close that in the midst of a decline for a scalp trade in the first half hour. We’ll move into a first high between 10:00 and 11:00. There’s a pretty notable drop in the beginning of the 11:00 to noon hour, however it won’t last long. There’s a breakout that starts out of a trough and takes us into another high toward the end of the 11:00 to noon hour.
There’s a crest or peak somewhere around noon. There’s then a decline to and through support to meet a second support and we’ll rotate sideways along that support. There’s likely a brief peak around 1:10 that’s easily missed followed by a decline and then another big move to the upside taking us to a high at the end of the day. We’ll move above resistance, stay above it briefly, and then break back down shortly thereafter.
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