Monday, June 20, 2011
Anticipating trend from the 1st bar
A large gap can help you anticipate a trend day but more important in predicting a trend is a reversal of an extreme of the day. Today's b1 reversed b70 lod from previous day and the latter part of the prior day demonstrated sufficient strength for us to expect at least a test of the high of yesterday.
A second attempt to reverse the extreme of the day if the first attempt fails is also a very good indicator of a possible early trend if it happens within the first hour. An entry here is swingable for many points at least above one or two swing points from the prior day.
Conservative traders can enter the 1PB above b11 after two failed attempts to sell off at the ema.