This week to help motivate ourselves to have a great week, let’s review a profitable trading day from last week with a look back at the charts and the Pre-Market information provided to our users. Additionally, for a special treat, we are including a picture of a proprietary chart developed by Pat Tabet. Then we’ll talk about what’s been hi-lighted on these charts and how a trader could put it all together for a very profitable day.
In the chart above we can see the day begins one-time-framing down for the first 3 periods of the day, D is an inside bar in the pre-market support zone of 2063.25. E period looks below D, is rejected, finds buyers and traps the late shorts starting the rally. The market moves from 2061.75 to about 2070 and pauses before the ECB news of possible QE pops price through the pivot at 2071 and rallies to a new high at 2077.25, just one tick short of the 200 % measured move fibonacci extension shown in the Trend post from November 23.
Below is the bid/ask footprint illustrating the reversal at the lows.
And here as promised… please click on the chart below for a closer look at the proprietary chart indicators developed by Pat Tabet.
Please note the beautiful signals these indicators produced that supported our trading throughout the day. A short signal is displayed by the first set of circles, this is where a trader could either initiate a new short or add-on to an existing short to take advantage of the 5 minute downtrend. The second set of circles show the reversal at the support zone, and a long signal. The third set of circles shows the breakout from balance, another short opportunity, confirmed again by the indicators. Altogether 3 distinct opportunities with low risk and high probability of great returns.
As always, check in Monday morning for all the updates from Charles and Pat, followed by Lewis Borsellino’s trading plan and thoughts on the market day.
Have a great week and as always, trade smarter, Not more often!
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