After a Trend? Consolidation
Sometimes you get two Trend days in a row, but more often the next day is a consolidation. The first hour range was 5.1 points (just like Friday’s narrow range.) The 7:48 bar (Pacific time) created a double bottom that was also a Stochastic oversold condition. If you took that trade it would have been profitable, but was the exit going to be at the earlier high, or at the upper trendline already drawn? Notice it tried both.
It didn’t make any difference to me, since I didn’t really expect a breakout. I’m used to being wrong in my expectations about the market, but I don’t use them to trade - just to help decide whether I’m willing to risk an entry. Not shown on the chart is the July 5th peak just two points above a first hour breakout. That kept me watching.
Notice how price turns nicely at the trendline setups. At 9:15 it gives a profit-taking exit if you took the earlier trade, and at 12:30 it bounces off a parallel trendline (also at the first hour’s high) to go sideways into the close.
