Wednesday, August 10, 2011
Large inside day
A small inside day would normally be a poor day but given today had a 40+ point range, riding a couple of swings can be fruitful. The trick on days such as these is to recognize a failed breakout and exit and possibly reverse off it.
The right move on the AM trade was to reverse long off the fBO on b20 and reverse short again off b60. The trouble with trading swings on trading range days is that a trader needs to develop flexibility regarding possible fBO. If I had correctly read b60 as a fBO signal, I would have reversed short instead of finding reasons to go long all the way down.