A pattern of higher lows and lower highs constitutes consolidation. I am looking for a break of the swing high or swing low to trigger a trade here. Given that the consolidation is so wide, we have a lot of room to work with. Trading above 285 will likely result in higher prices (thinking 315) while trading below 255 will result in lower prices (thinking 215). For riskier traders who dont want to wait for confirmation, I am long biased above 275 and short biased below 265. I recommend a 2:1 RRR for this trade.
Trade closed: target reached:
Our riskier traders wouldve hit their first target today. Waiting for confirmation on the much larger short.