Friday, we reached out R1 value and bounced off. We are barely above our entry value due to the overnight market bringing down the futures. For the conservative trader, you were out at R1 and you are looking to get back into the trade at R1+buffer. The aggressive trader is still in the trade looking to reach min. R2
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Here is the Harmonic Analyzer chart:
If you look closely, you will notice there is a seasonal drop (not predictive of future results) in the market around 6/5. That is tomorrow. Therefore, anything can happen +-2 days from this date too.What do we do? I don’t like to take many risks. Therefore, I am going to exit with some profit. I will setup another entry at R1+buffer to get back in.
If you are very aggressive, you will stay in until you get stopped out.
For EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provide d on the Blog is for educational purpose .
