8.26.13 “Still Rangebound”

Looking back at past seven days shows clearly via Volume Profile that price remains within a well defined range with a wide Value Area between 1648 – 1662. The balance point is 1655 (VTMP). Our Trade Strategy remains to sell the “unfair high zone” from 1662 through 1668  and buy the “unfair low zone” from 1641 – 1648. Reversion to the seven day mean near 1655 is profit zone.

Volume Profile:  https://twitter.com/TradePilotPro/status/371970248376713216/photo/1

Now this is larger picture…one in which identifies what the “big boyz” are anticipated to trade…Our goal as intra-day traders is to identify “key zones” and remain on the side of the dominant player. The tactical approach we use such as Open Range, AJ’s, LB’s Premium/Discounts trade setups must be in agreement with overall strategy.

In overnight trade price tested upper edge and was squarely rejected, so current GBX High will become “marker”. Prior Day High (PDH) 1662.75 will be key for session traders as initial resistance. Key pullback levels to be mindful of for potential support are 1656 – 58 and underneath that is 1650 – 1652.

Good Trading…David

Habitude Eleven
I am courageous and I always act, even in the face of uncertainty and possible loss. Do not say, no fear. Feel the fear and act anyway. I may be frightened, but I still saddle up. I am not reckless. I act promptly in accordance with my methodology. I respect my calculations. I have a healthy respect and I balance that respect with my courage. I am an explorer. I am on a hero’s journey.

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