Day review: YM 07 Jan 2015

Here is a quick review of YM for the past day. Since the principle of these trades are closed to Dummy trading , which is “To limit risk by better market timing”, I categorize this series of post under Dummy Collection.

EOD YM 07 Jan 2015

EOD YM 07 Jan 2015

Looking at the context, the hourly chart at the right,  downtrend is clearly observed.  One interesting point is the V-shaped reversal from 17200. I expect the high/source of previous supply 17502 to be tested. I don’t immediately fade these supply , demand zone, instead, I prefer to see price trade into them and decide the next step of action.

There were a couple of trading opportunities appeared in yesterday’s session.

First one was the break and retest of the uptrend line, which was around 17433. This is a mean reversion trade for me. YM traded above current day’s developing value area, and auctioned back into value area of the day. I expected the day’s developing value (VWAP, not shown in the chart) around 17398 to be tested, in other words, I expect YM to, at least, trade into VWAP from here.

Second setup was when YM went back up to yesterday’s RTH high.  A break of uptrend line with over-and-under pattern (credit to Steve W from NoBrainerTrades for this concept) form at this point. A short at the retest 17502, with target back into the day’s developing value area, confluence with 1.618 measured move target around 17460.

Those were two obvious trade opportunities I found yesterday in between ADP release and FOMC meeting minutes.

Have a good day.

About Gav

A Father, Husband, Trader, and Blogger. A serious coffee addict. Started trading since 2005, trades Futures and FX.

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