Trade Strategy 02.18.15

Yesterday was a solid Cycle Day 2 (CD2) whereby price rallied to reach extension target of 2098.50 outlined in Daily Trade Strategy 02.17.15. Here’s an excerpt: Scenario 1: IF price can Clear and Convert (C&C) PDH (2093.75), THEN there is a 50 % chance of expanding range to 2098.50…”

Markets are quiet in overnight session trading within a narrow band holding above initial minor support 2094.25, though price has not expanded above prior session high 2098.75.

Today is Cycle Day 3 (CD3)…Odd of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 54%; Average Range on CD3 = 17.75; Max Average Range = 21.50; Possible High = 2115.00; Possible Low = 2080.75.

***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 can Clear and Convert (C&C) PDH (2098.75), THEN there is a 60% chance of reaching 2100.00 – 2103.00 STATX Zone…Above this zone targets 2106 – 2109, then 2100 TargetMaster Range Breakout Level. Cycle Expansion Target is 2115.00.

Scenario 2: Having reached minimum cycle target (2098.50) in prior session, this level will need to be converted to continue the bullish rally. Yesterday’s Market on Close (MOC) Imbalance was $1.7B to sell-side. What this means is that large mutual funds have begun taking profits within this current up cycle. Failure to C&C PDH (2098.75) suggests buying is temporarily satisfied, which could lead to a more significant pullback in price. Levels to be mindful of on pullback are: 2091.50 – 2089.00 3D CPZ. Below this levels targets 2083.50 – 2080.75.

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 Six
I am at peace with uncertainty. I know there is no such thing as a sure thing. I have no particular need to be right. I understand that being perfect has no place in trading. I am flexible. I am willing to change my mind. I am alert to scenario changes. I accept the information that tells me I am on the right track or on the wrong track.


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