The Daily Market Forecast... reversals or breakouts?
Tuesday’s Blog Results: The suggested long entry at 4633.25 ran for 18.75 points. The short never triggered.
Today’s Trading Tip: Reversals or breakouts?
Both. The high-volume price levels formed by the accumulation and distribution of large positions are simply at “fair value.” Think about it this way: there was a buyer and seller for every contract traded. This means they AGREED the price was fair.
Once price strays OUT of the fair value level it becomes attractive to a trader who is either bullish or bearish. This allows you to trade both reversals and breakouts around the volume levels. Looking at the chart above you’ll see that price went up and through the prior day’s fair value level offering you the opportunity to buy the breakout, as was suggested.
Keep in mind as you follow the performance of the Blog levels every day they are both reversal and breakout setups. If you want to see ALL the levels every day, join our team. Click here.
Today’s Best S&P Futures Turning Points:
Short Level: Sell 4670.75 stop 4675.75 (5.00 risk). Same as yesterday.
Long Level: Buy 4611.25 stop 4606.50 (4.75 risk).
Trade Well,
Mike Siewruk
P.S. Join us every Saturday morning @ 10:00 ET for our weekly LookBack (5) trade review session. Every trade for the week is analyzed. Now open to the public. Meet the team. Ask questions. Register here for the December 18th session.