Trade Strategy 01.08.15

Prices are extending prior session “relief rally” gains in overnight trade having reached TargetMaster Breakout Level 1 at 2037.25, which is approximately 50% retracement of this past week’s sell-off. Additional price strength in pit session targets 2045.75 Breakout Level.

Today is Cycle Day 1 (CD1)…We should be looking for price weakness at some point today as price to probe for a new “secure cycle low”. Odds of Decline > 10 = 71%; Odds of Decline > 20 = 41%; Average Range on CD1 = 18.75; Max Average Range = 21.75. Possible High = 2032.50 based upon penetration of PDH (2023.75); Possible Low = 1996 based upon violation pf PDL (2004.75).

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

Today’s Hypotheses:

Scenario 1: IF price clears and converts PDH (2023.75), THEN there is a 50% chance price hits 2037.25…encountering a sell response…IF price momentum is strong, THEN upside target measures 2045.75.

Scenario 2: Price has cleared PDH (2023.75) in overnight trade and reached initial target 2037.25. IF price fails to convert this level we would anticipate a pullback in price to retest 2023.75. Failure to find a buy response targets a deeper pullback down the the 3D CPZ 2014 – 2012.

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 of 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 Four
I am at ease with controlled risk. I will risk and I will win. I am courageous. I will take a chance. I manage risk to my comfort level. Risk keeps me on my toes, keeps me alert and at the top of my game.

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