All Access,  Blog

Buyers Tow the Line – Sep 23, 2020

MARKET COMMENTARY – As the battle rages on, traders continue the press up last month’s candles. Buying the bounce continues to reward traders. The US dollar is in a sharp rebound and many of the FOMC leaders are speaking this week with Jerome Powell on the Hill every day this week. Trading levels remain intact. The NQ holds steady with the strongest bounce as the DJIA gives us the weakest. Until the buying is no longer rewarded, we will see these bounces continue into the resistance above.

Recapturing/holding the VWAP with pockets of savage downdrafts is still the likely price flow today also. Eyes on the VWAP everyday will help you keep the right side of the trade in focus. Until we breach 3415-3420, this recovery bounce is suspect.

INTRADAY -Keep an eye on the daily resistance and support that we discussed and expect battles at these regions as buyers have a lot to prove to maintain bullish price flow on monthly formations- technical damage is being repaired. BIG time frames will help you position with the wind at your back.

Deep dips remain staging grounds for buyers but some momentum damage has been done- quick strikes to support and back to resistance appear to be the highest probability for success today- dips could certainly get deeper as price action shifts to bearish mode finding to locate deeper support tests.

**********************************************************************

THIS WEEK’S LIVE TRADING ROOM LINK

**********************************************************************

Register using the highlighted link above to join us for the entire week

This week’s calendar

This image has an empty alt attribute; its file name is this-week-3-1024x505.png
Econoday Calendar

********If you feel you need some help understanding how price moves, remember you have the COACH’S CORNER for video review.

THINKORSWIM USERS –Chart share links for ES_F , NQ_F , YM_F , CL_F , GC_F – levels here for download to the ThinkorSwim platform

LINK FOR TODAY’S TRADING DATA EXCEL SPREADSHEET

This image has an empty alt attribute; its file name is LEVELS-14-1024x495.png
TRADING LEVELS

If you find yourself being chopped up, widen your time frame or take time away from your screens. This is a time when less is more.

TRADING VIEW & ACTION PLAN
The big move has been downward and we are still in the hunt for support. This is a whipsaw grind with tests of both support and resistance ahead and we are seeing how savage the retracements can be, but bullish traders will attempt to be bold once more at the monthly support edges that we seem to be carving out here from August. Sellers still have the overall advantage in the short term, strengthening the chance that we slip back into the shorting zones and supports in our range near 3226 to 3156 and lower. Buyers are doing their best to force us back to the north and the breach and hold of 3420 will be ideal for them. Once this formation changes, we will look for the fades to get smaller, but for now, any big bounces we see will lead us to more selling pressure above-so trade what’s in front of you and worry about what is ahead when we arrive there.

Intraday LONG trading from support edges like ABOVE the VWAP or tight moving averages will give you the least risk event for engaging – removing your trade at resistance will allow you to participate – understanding that countertrend bounces can be swift and sharp but will likely fail under the broken structure of the market.

Intraday SHORT trading from resistance edges like the old highs or bigger moving averages will give you the least risk event for engaging. Follow the candle trend until candles stop breaking higher.

Here’s a link to the METASTOCK software– you can have your own copy of Metastock to run these tests and setups using Target Rich Trades.

ES_F Sept contract
Target Rich Trades from MetaStock –

NOTICE: All user and member interaction and participation with TheTradingBook.com implies agreement with our Terms & Conditions