Missing Signals
Like yesterday we had another narrow range session. The difference is the almost complete lack of good trendline channels and Fibonacci relationships. Usually one or the other will give some good signals.
The first bar spiked down, but didn’t quite reach yesterday’s low. Notice that we already had a trendline with three touches from the previous session. When there is a one bar break like that, I’ll leave the existing trendline on the chart and draw one from the actual low. Today it was the older trendline that held the market at the close.
On the rally the first pullback didn’t even reach 38%, so once again I saw no trades in the first hour. And since we stayed inside that range for the rest of the day, my rules say wait for a high probability setup.
The top was a 127% external retracement of the previous decline, and even though there was a Stochastic divergence, there wasn’t any other Fib measurement that pointed to that level. No trade, and no setups for the rest of the day.
