Trade Strategy 2.11.22

Markets

Source: SeekingAlpha.com

Economic Calendar

10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count

1https://www.investing.com/economic-calendar/

***New: PTG Trading Room Chat Log’s Link

S&P 500

Prior Session was Cycle Day 3 (CD3):  “Markets first tested yesterday’s high, then the news come and they test yesterday’s low, then after what we could think they digested the news, they retest the highs again, only to reverse and make new lows at Violation levels”…Richard Boisvert.  Prior range was 108 handles on 2.324M contracts exchanged. 

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Today begins a new cycle, with the Average Decline measuring 4554, which is more than in-place, as price tested Lower CD1 Violation Zone and prior CD1 Low (4456). As such, estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 4476, initially targets 4490 – 4500 zone. 

2.) Price sustains an offer below 4476, initially targets 4460 – 4455 zone. 

*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.

PVA High Edge = 4581       PVA Low Edge = 4517        Prior POC = 4564

Range Projections and Key Levels (ES) March 2022 (H) Contract

HOD  ATR Range Projection: 4545; LOD ATR Range Projection: 4407; 3 Day Central Pivot: 4525; 3 Day Cycle Target: 4490; 10 Day Average True Range;  91; VIX: 24.50

Nasdaq 100 (NQ)

Today is Cycle Day 1 (CD1)…Average Decline for CD1 measures 14566 which is currently in-place, as price weakness continues to be the dominant theme. Prior range was 440 handles on 819k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

Bull Scenario: IF Bulls sustain a bid above 14690, THEN initial upside estimate targets 14750 – 14770 zone.

Bear Scenario: IF Bears sustain an offer below 14690, THEN initial downside estimate targets 14640– 14625 zone.

PVA High Edge = 15003       PVA Low Edge = 14772     Prior POC = 14930

Range Projections and Key Levels (NQ) March 2022 (H) Contract

HOD  ATR Range Projection: 14978; LOD ATR Range Projection: 14260; 3 Day Central Pivot: 14803; 3 Day Cycle Target: 14957; 10 Day Average True Range: 451; VIX: 24.50

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

“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee

*****This trade strategy report is disseminated for “education only” and should not be viewed in any way as a recommendation to buy or sell futures products.”

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

IMPORTANT NOTICE! No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading securities and options on equities. Only risk capital should be used to trade. Trading securities is not suitable for everyone.

Disclaimer: Futures, Options, and Currency trading all have large potential rewards, but they also have large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don’t trade with money you can’t afford to lose.

This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41 –HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN


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