The following image was sent out via social media on the 14th of February.
And shared again in last week's newsletter (23rd of February).
In response to these postings, I received the following question via email:
- "Wondering about today's FB post about emotion driving the market. In the chart example you have given, is there any entry for YTC traders at all?"
And very applicable, not just to this example, but to ANY TIME when a news reaction completely disrupts the normal price structure.
The quick answer is yes, there are YTC trades here.
Firstly, let's note that this was a 5 minute chart, in order to fit all the data on one picture. Those trading lower timeframes will have additional structure to work with.
As I trade the 1 minute timeframe, I'm going to use that timeframe for all further charts. However, the same concept applies no matter what timeframe you use.
Here's the structure at the time of RTH open (09:30am ET).
(a) Sideways Trend Definition – Page 101 (and Fig 3.44) of Chapter 3 of the YTC Price Action Trader.
(b) Uptrend Definition – Page 92 (and Fig. 3.34) of Chapter 3 of the YTC Price Action Trader.