This commentary will focus on the first 60-90 minutes after the Opening Bell. However, our strategies can and will provide setups the entire trading day.
Overnight price action from Sunday is showing evidence of a 3X tops (i.e., Head-and-Shoulders) chart formation inside the prior days range.
Price action is current in the middle of Friday’s range and when we look at it from a birds-eye view, we see the early stages of a mini market cycle transitioning to a phase 4. We have to be cautious this morning because of economic news being released later.
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Price action went in our favor and we got 2+ points profit on our small position. Second trade creates small loss.
Later in the morning, we get a nice Flag pattern setup for 2+ points after a candlestick topping tail pattern formed near the opening bell and created a lower high.