In theory if price is overbought (break below red bar in a decision point area)
then you should sell and if price is oversold (break above blue bar in a decision
point area) then you should buy.
This methods works and it is profitable to trade this way. However to reduce the risk (initial stop placement) and the time it takes for the position to be profitable, i found out its wise to enter not only in decision point area but also at situtations where a trend line break would occur.
Monday:
- Down at the 3 am open after trendline break
- After 40 points down or after 7 am up
- 10 am short
Tuesday:
- Up after 3 am
- Short after trendline break
- Small up move prior to the 8.30 news
- Trade down to Double bottom after 8.30 news
- 9 am up
- 9.30 am down
- 9.50 am up
- 3 am up
- trendine break down around 3.45 am
- 6.30 am up
- trendline break down
- 9.30 flat
- around 9.45 trendline break up
- around 10.45 trendline break down
Thursday
- 3.15 up
- after 4 am trendline break down
- 5 am to 7 am trendline break up
- 9.30 am double top sell
Friday
- 3 am up
- 4.45 am up
- after 7.30 am trendline break up
- after huge rally flat
- 9.30 am up
- after 11 am trendline break down
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