Saturday, July 7, 2012

Trading Plan: 9.30 am opening trade

Wait till prices goes into one of the 4 different price areas 

Usually I wait till the dow, nasdaq or S+P gets to a 10 Min Decision Point area during the opening hour, however if there is a trending market, its wise to simple go long at double bottoms or at least on a breakthrough of the 10 min DP area, not expecting a reversal but trend continuation:


So there are 4 setups to wait for:
  • Either the price is at a double bottom situation on the 24 hour chart (in the DP area)
  • Price reached a DP area on cash market session chart
  • or there is an AB correction on the 10 Min Chart
  • (very seldom) a 50% pullback on the prior swing allows another entry
Prior Session Setups:

Also if there is already a setup prior to the opening minute its wise to trade in the direction of the setup:


If prior day opened with a gap up its on most days profitabel to go long in the US session on the next day.


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