4/23/24
I’ve decided to slightly adjust my risk management and profit taking strategy, and this update is reflected in the methodology here. This helps me to capture more profits and reduce downside exposure for my current trading style. (Look for update in Step 4 of the methodology)
Recap: Several great setups from the plan and the video today, mostly centering around this: “The close this week was below the core supports at 5024 and 5034.50 and these now should be recovered for bulls to start to see some upside…For shorts there, the best case is that there’s a somewhat quick reaction (15-30 minutes) from bears and a solid signal to short it.”
The market tested this 5034-35 area early and pushed lower, so I entered short. Per the revised risk management, I exited this trade in accordance with that and captured profits around 5008. I had a runner to take off at support at 5003, but this was taken out at breakeven.
After failing to find further offers below the overnight high, the market reversed and recovered this support at 5024. Having secured my win on the day, I traded this with a separate (smaller) account when price recovered. I was able to get in just above 5024 and secured profits in accordance with my risk management and then just prior to the next level at 5035. The runner on this also got taken at breakeven, but after recovering the next core level, there was excellent continuation to targets at 5050 and 5062. I review this trade below as it’s one of my core trading strategies.
Balance/Trend: One time framing lower on the daily ended today as bulls were able to recover major supports somewhat early in the session and rally. However, today did little to change the predominant trends as price is still trending higher within long term channels and sharply lower in the near-term pullback channel.
Analysis: The end of one time framing today could be an early indication that the market is taking some time to consolidate ahead of data releases later this week. As long as the core supports hold though, there’s certainly scope for further upside. One principle of technical analysis is structure formation - breakout - backtest, and if bulls can continue to push price up then we can start to see how strong the bullish recovery is on the backtest to the red flag/pullback structure. As it stands now though, much of today’s rally was taken back late in the session and core supports again are in focus.
Trade Review, Detailed Trading Plan & Charts