Back n Fill…Bullish Style

Early strength yesterday lead to the expected “back n fill” consolidation laid out in prior Daily Trade Strategy. The current cycle continues to play out as scripted, so no change in underlying assumptions that bulls continue to dominate with no real sign of a top. As such, the main trade strategy continues to be buying pullbacks to key support zones.

Today is Cycle Day 3 (CD3) and having back n filled in prior session…We would be looking for a retest of cycle target highs near 2007 handle. Upside Xtremes measure 2011.50.

Odds of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 54%; Average Range = 17.75; Max Range = 21.25

***Note: The odds highlighted are not predictions, rather a guide based upon historical observed occurrences.

Today’s Hypotheses:

Scenario 1: IF price can stay above 2003, THEN there is a 50% chance of testing prior day high at 2007. IF converted, THEN bullish cycle projections measure 2011.50 target.

Scenario 2: Failure to convert 2007 level on test calls for pullback to 2003, which is prior day Volume-Trend MidPoint. This level is key to hold on pullback…Violation and Conversion of 2003 calls for deeper correction into yesterday’s range and test of day’s low.

Trade Strategy: Price has begun overlapping (back n fill) prior daily ranges, and as such created two-sided trade opportunities intra-day. With this in mind, our current tactical trade strategy will be focused on both Long-Side and Short-Side Trade from key Decision Points. Focusing on early entries with Bull/Bear Stacker Setups, and Premium and Discounts.

Remain Flexible…Follow the Rules…ALWAYS USE STOPS!

Good Trading…David

Habitude Nine
I will identify my mistakes and learn from them. I am optimistic, realistic and honest. I will not make up stories about the good or bad things that occurred in the past or are happening now. I admit when something is not working. My optimism gives me faith and courage. I will not fall prey to blame and fear.



Leave a Reply