"Session Long Rally" setup

My "session-long" rally setup triggered at Thursday's open. Even before the open, seeing the gap up indicated, we know the chances were very high for trending up throughout the day.

Trending down into the prior day's close, and then rejecting it at the following open, is the basis for the setup. But there are several bells and whistles that further define the setup.

The most important other characteristic is that the prior afternoon's high must have printed before the last 60-90 minutes. Gapping up above it would qualify as rejection.

Each of my intraday "timing windows" is then expected to probe above the prior timing window's high. Every timing window but one, which is usually the noon hour. When the noon hour confirmed, we were even more certain that sellers were marginalized for the day.

There are several caveats. One is that not maintaining the gap up can be as bearish as the setup would have been bullish. 

Session-long declines are signaled the very same way. And the following session tends to resolve in a specific way, too. But that's another video.

Posted to Rod David's Futures Market … on Mar 13, 2015 — 3:03 AM
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