Wednesday, January 26, 2011
My NQ Trade Guideline for Thursday
Wednesday's morning gap-up opening above prior swing high and above FT Pivot, followed by a successful test of breakout level implies a high probability breakout continuation pattern that started at the end of Tuesday's trading. The 1:1 upside target was not only achieved but exceeded by a few points.
Soon after the target was reached, as expected, the market went into a consolidation mode that lasted until the end of the day, thereby setting up a high probability trending move on Thursday morning.
Since Wednesday's afternoon pattern is similar to Tuesday's pattern I will be looking for another leg up in. Whether the market needs to pullback down to support zone first thing in the morning before running back up, or run-up first in the morning before coming down, depends on the opening price..
I will use 2312 - 2316 as my LIS Zone in the morning. If the morning trend is up, I will look for price to push up above 2333 swing high before reversing or consolidating back down,
And if the morning trend is down, I will look for price to drop down to 2294-2298 support zone before reversing or consolidating back up.
Soon after the target was reached, as expected, the market went into a consolidation mode that lasted until the end of the day, thereby setting up a high probability trending move on Thursday morning.
Since Wednesday's afternoon pattern is similar to Tuesday's pattern I will be looking for another leg up in. Whether the market needs to pullback down to support zone first thing in the morning before running back up, or run-up first in the morning before coming down, depends on the opening price..
I will use 2312 - 2316 as my LIS Zone in the morning. If the morning trend is up, I will look for price to push up above 2333 swing high before reversing or consolidating back down,
And if the morning trend is down, I will look for price to drop down to 2294-2298 support zone before reversing or consolidating back up.