Trade Strategy 01.20.15

Friday’s rally took a pause yesterday for MLK Observance, but has reignited in overnight trade action pushing price upwards to test key 2026 handle high from 1.15.15. Further strength and conversion of this level projects range expansion target of 2039.50.

Today is Cycle Day 3 (CD3) Positive Three-Day Cycle has already been achieved, so any further strength is impulsive (expansionary) trade dynamics. Odds of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 53%; Average Range on CD3 = 17.75; Max Average Range = 21.50; Possible High = 2032 based upon average penetration and conversion of CD2 high; Possible Low = 1992 based upon average violation of CD2 low.

***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

Today’s Hypotheses:

Scenario 1: Price held key support at 3D CPZ (2002) during shortened holiday trade, which projects a 60% chance of retesting PDH (2023.75)…Successful clearing and conversion of this level targets 2029.25, then 2032.00 projected HOD…IF momentum remains strong, expansionary price target measures 2039.50 TargetMaster Breakout Level.

Scenario 2: Price is currently testing PDH (2023.75) in pre-market trade…Failure to convert this level during pit-session trade suggests necessary back n fill to attract new buying…Initial structural support zone between 2010.00 – 2013.50 CPZ. Violation of this zone target PDL  (2023.75) and 3D CPZ (2001.25 – 2002.75). Extreme downside zones measure 1998. 1995.50…1992.00.

Trade Strategy: Our tactical trade strategy will simply remain unaltered…We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus on Bull/Bear Stackers and Premium/Discounts. As always, remaining in alignment with dominant intra-day force increases probabilities of producing winning trades.

Stay Focused…Non-Biased…Disciplined  ALWAYS USE STOPS!

Good Trading…David

Habitude Ten
I know anything can happen, and I can handle anything that does happen. I am open minded. My thoughts and perceptions are clear. I know what to look for. I have rehearsed everything. I adapt to change. I will listen to my indicators and the patterns that emerge. I will adjust and not demand that things continue as they first started

Leave a Reply