Gap ups/downs are a strategy used to overcome stubborn levels. The most recent contract rollover is no exception. Opening way above the inflection level guaranteed a bullish session for the NFP day (12/8). The market is positioned for an upside continuation. We may still see some consolidation in the upper part of the channel, representing a clear bull flag formation, before a final push through 16320 inflection level. Perhaps the most anticipated Santa rally this season.
A less anticipated scenario: the price returns in the lower part of the channel and consolidates. That may lead to the channel breakdown.
As a day trader I focus on rotations only, I trade rotations. What causes them is not my concern. I took awhile to adapt to this way of thinking. I can anticipate a potential rotation based on the technicals though but the ultimate word is left to the market. Prediction vs anticipation is a big topic.
A smaller timeframe is used to watch the price action around an inflection level to confirm a beginning of a rotation.
Abstracting the price action through the lens of rotations keeps a trader less biased and ultimately less irritated when the market ignores the collective consensus.
A random thought.
In the age of informational flood it is a very difficult job to be a stoic trader. A trader does not need to be obsessed with tools and indicators to be profitable, he needs to stay objective. A simple rule: a support is support until's broken will make you money in the long run and this is an objective way of trading.
Cheers.
12/9/2023
A less anticipated scenario: the price returns in the lower part of the channel and consolidates. That may lead to the channel breakdown.
As a day trader I focus on rotations only, I trade rotations. What causes them is not my concern. I took awhile to adapt to this way of thinking. I can anticipate a potential rotation based on the technicals though but the ultimate word is left to the market. Prediction vs anticipation is a big topic.
A smaller timeframe is used to watch the price action around an inflection level to confirm a beginning of a rotation.
Abstracting the price action through the lens of rotations keeps a trader less biased and ultimately less irritated when the market ignores the collective consensus.
A random thought.
In the age of informational flood it is a very difficult job to be a stoic trader. A trader does not need to be obsessed with tools and indicators to be profitable, he needs to stay objective. A simple rule: a support is support until's broken will make you money in the long run and this is an objective way of trading.
Cheers.
12/9/2023