Just Watching
Friday I pointed out the break to a new high with no follow through. That was enough to make me start today with a large measure of caution. I’ve pointed out one of my “trade avoidance” techniques before, and I used it again today.
If I can’t find a nice setup during the first hour and that hour is a fairly narrow range, I’ll set an alarm at the day’s high and low. If I find a “great” setup, I may take it, but my intention is to wait for a break of the early range. This is just another way of trying to stay out of consolidation patterns. Today the break never happened.
The high at 6:45 (Pacific time) was actually a Test of Top based on Fridays trading, but even using a shorter term oscillator I couldn’t find a tradable divergence. It turned out to be the only potential trade of the day.
We’re still above the breakout level on the daily chart, but have broken an uptrend line on the 15 minute timeframe and are now going sideways. That means I’ll come back tomorrow without any directional bias. And after two days of just watching, I hope to find a trade or two.
