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RT'ers
A particularly nice looking
trading opportunity in Dec Coffee. is brewing (pun intended):)
In viewing the attached gif :
While the chart does not show it, this market is sitting right on a TREX
Price and Time LOW. (don't be confused by the TREX breakout indicator
you see. That is a different part of the TREX system which trades
contraction breakouts,and is different from TREX Price and Time, which
trades turning points)
Notice that the daily bar for Monday has been painted GREEN, and that
there is a blue (cyan) tic mark underneath the bar.
The Green paint indicates a likely breakout (system: ID 1)
The blue(cyan) tic mark indicates a likely swing reversal
(system: Vortex)
Notice below, the indicator "Power Index" this is a trending indicator.
The Blue line ABOVE the yellow median line indicates an UP trend.
See that little bounce (hook) the blue line has made off the
yellow line? This indicates that the trend is still UP and we are
catching the bounce of a retracement.
Notice the indicator labeled /ch9 Stochastic. Many of you might
recognise this indicator. It is Linda Raschke's "Anti" Stochastic
set. Notice that the "fast" yellow stoch line has just bottomed
against the "low" range of the indicator. I like to trade this
when the fast stoch hooks UP out of these situations.
Remember to think about what your indicators will look like tomorrow
if the market does what you think it will today.
If the market indeed trades up, as TREX , the Power Index and
the short term Vortex and ID1 systems imply, then we will have the
"hook" in the Anti. What this tells us is that not only will we
have a winner, we will also have more upside potential to go. :)
It also doesn't hurt that we are camped above a long term simple
moving average. (Red dotted line)
Walt Downs
CIS Trading.
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