Day’s Theme: Sideways behavior followed by a big move to the upside. We may also have a lowest low for the month.
Behavior Around the High: A U-shaped dip that forms near the intersection of two perpendicular diagonal trend lines.
Behavior Around the Low: A fast, sudden move higher out of the low.
Exclusive Trade Opportunities for Subscribers:
I’m advised to trade around a period of sideways rotation when we rise to meet the nearest resistance, stay above it briefly, and then break back down and continue rotation.
An opportunity to open a short position in the midst of a rally in the morning. I would close that when we revisit a low around 10:00 or midday.
An opportunity to open a short position at the end of the day to close the following day.
Overview
On September 18th, there’s a trade opportunity in a period of sideways fluidity. There’s a big move higher on a one-day chart around the open. We’ll successfully turn resistance into support and create a high in the first half hour. There’s a decline to a trough between 10:00 and 11:00. We’ll have a move higher out of that trough and then a retracement of that move back down. There’s mixed behavior between 11:00 and noon. We’ll decline through multiple support levels but we’ll also have a bit of a rally starting. Right around 1:00, there’s a big move to the upside off of the low. We’ll move into a peak or crest a bit after 1:00. We’ll then sell off through multiple support levels and move into sideways rotation along support between 2:00 and 3:00. There’s another big move to the upside into a high in the last hour. That move to the upside offers an opportunity to open a short position and close it in the morning the following day.
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