I did not execute any trades today.
I felt like I had a good read this morning. The visualization on the overlay is a little off. I had the invalidation of the contraction noted in my comments and visualized the move down if the contraction broke prior to the open.
The major downside move happened prior to the open and I did not have a chance to trade it.
I think it is notable that when I see this happen, to anticipate some sort of major reversal later in the day.
I simply did not get any setups today. I was looking for areas to execute no confirmation trades as well.
The only possible scenario would have been to buy the retest of the low of the day. This would have been a very difficult trade because my premise was for a test of 1078.50.
It was worth trading because if there was going to be a reversal, that is where it would be at. I am working towards allowing these type of trades in my plan.
The tough part is separating extremely good areas like that from getting over aggressive in an area just for the sake of making a bet.
I was actually looking to short the grind up off the lows but there were no setups to the downside either.
I suppose my plan kept me out of trouble but it also kept me out of the market. It was an acceptable outcome for me.
The volatility is getting wider again and we should see some good action over the next week.
There was significant divergence on the Ticks and any of a number of unbounded oscillators which would have given you a heads up to take the retest of the lows. Besides - this trade went for 16 points in the ES as it grinded it's way to the Gap Fill, and you could have had a small 6 tick stop. Why not incorporate a setup like this in your plan when it offers such significant Risk-Reward ratios?
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