Trade Strategy 01.26.15

Price consolidated gains during Friday’s session but was unable to hold those gains as price gave it up into settlement, closing on the lows. Overnight trade extending this weakness, as price traded down to Three-Day Central Pivot 2026 handle before bouncing back to 204, where price is currently trading pre-open.

Today is Cycle Day 1 (CD1)…Odds of Decline > 10 = 71%; Odds of Decline > 20 = 41%; Average Range on CD1 = 18.75; Max Average Range = 22.00; Possible High = 2071 based upon average penetration of CD3 high; Possible Low = 2027.50 based upon average violation of CD3 low.

***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 can hold above PDH (2043.50) during Pit Session, THEN odds are even to push back to 2049.25 CPZ…IF price can convert this level, THEN additional upside measures 2055.75 TargetMaster Range Breakout Level.

Scenario 2: Price has already exceeded average range metrics observed on CD1 in overnight trade action and has bounced 17 handles off lows back to near PDH (2043.50). IF price fails to clear and convert this level during Pit Session, THEN odds (75%) favor continued price weakness. Key Levels to be mindful of are 2032 – 2034 zone which is average decline zone on CD1. Below this zone measures 2026 – 28 zone, with Xtreme STATX Zone between 2023.50 – 2016.40…TargetMaster Range Breakdown level is 2014.50.

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 Two

I am detached from the results. I think in terms of the process and the validity of the process. I understand that I am more than the trading. I do not tie a fragile ego to any day’s trading results. I have faith that over time I will make money. The results of any one trade are statistically unimportant. I think in term of probability. A single trade says nothing about me as a person.

Leave a Reply