Sunday, January 9, 2011

Potential Scenarios for Monday

On a daily chart, the trend is UP.

The Opening Price in relation to the prior day close would be key as to the direction of the morning trend. Since Monday is often a bullish day, should it opens above the Floor Trader's Pivot, I would be looking for price to stay above the pivot, with Morning Trend = UP.

However, another equally likely scenario, should price violates the Floor Trader's Pivot area, would be for the morning trend to be down, forming a bigger C-Wave down to the ADR area before resuming the uptrend.