On a dull day you often get two moves. They could be two moves down, of course, or one move up and one move down or reverse, or. as in the case of TAM. two moves up.
It is here where Pivot Points earn their living.
The chart shows a conventional gap up and Return to 4(EMA) play in the first hour. The fourth candle crosses the R2 pivot and is where the trade begins. A bit later it hits R4 at 26.03 and you could take your profit off that "cathedral of dead money" (9th bar) you see just before the long red bar down. If you kept this one on your screen though you could take a second bite of the apple at 14:45 when it once again ascended through 26.03 and came to rest with a double steeple at 16:00.
This trade was completely informed by the pivot points.
1 comment:
Great lesson
Post a Comment