Violation of Prior Day Low (1950.50) forced more liquidation in yesterday’s session…Range expanded to 30.50 handles as buyers were nowhere to be found, and Bears pressed prices lower to test low pivot zone from October 2nd. There is now increased potential for additional margin selling if prices cannot recover in today’s session….
Today is Cycle Day 3 (CD3)…IF price can hold above prior low and find aggressive buyers, THEN odds favor a strong rally back up to 1950 handle…IF selling continues, THEN we will have a failed 3-Day Cycle Rally…
Odds of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 53%; Average Range = 17.75; Max Range = 21.25; Possible Low on CD3 = 1916.50 based upon violation of CD2 Low; Possible High on CD3 = 1959 – 1963 zone based upon penetration of CD2 High.
***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences
Today’s Trade Hypotheses:
Scenario 1: IF price can hold above PDL (1925.75) THEN there is a 45% chance of price retracing to 1935.25 (CPZ) up through 1940.25. Above this level with strong buying, THEN price targets 1950 handle.
Scenario 2: Violation and conversion of PDL (1925.75) forces further margin liquidation which targets 1915.50 – 1916.25 zone. Failure to find responsive buyers in sufficient quantity targets 1905.00 TargetMaster Range Breakdown Level.
Trade Strategy: With intra-day volatility on the rise with swings of increased magnitude in either direction, our main trade strategy will be to remain open and flexible to two-side trade, both long/short from key Decision Point Pivots (DPP). 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 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.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS