Friday's narrow range ahead of the much awaited job's data was a perfect low risk setup. Place buy and sell stop orders on either side of the range as depicted by the blue lines just one minute before the data is released. Fast money!
A good way to anticipate a reversal is to monitor the strength of the move back to the base of support. Friday's early euphoria on strong jobs data didn't last due to the strength of the $
USD and its effect on commodities. Initially price pulls back on lighter volume, but once the 20 EMA gives way, volume on the downside accelerates forming a flag pole into support. Flags form on declining volume and once they break, volume accelerates all the way back down to
pre-market levels and culminates in a mini-capitulation.
Friday's narrow range ahead of the much awaited job's data was a perfect low risk setup. Place buy and sell stop orders on either side of the range as depicted by the blue lines just one minute before the data is released. Fast money!
A good way to anticipate a reversal is to monitor the strength of the move back to the base of support. Friday's early euphoria on strong jobs data didn't last due to the strength of the $USD and its effect on commodities. Initially price pulls back on lighter volume, but once the 20 EMA gives way, volume on the downside accelerates forming a flag pole into support. Flags form on declining volume and once they break, volume accelerates all the way back down to pre-market levels and culminates in a mini-capitulation.
1 comment:
nice to remember. thanks
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