Let’s start with the daily chart THREE sessions ago:
TWO sessions ago:
And now ONE session ago:
And today:
Can I say… I LOVE traps in the market. All markets. All timeframes.
And while I don’t trade the daily chart, the fact that the market set up like this on the daily greatly influenced my intraday trading of this session.
You may recall the recent article on the Bullish and Bearish Kicker Patterns.
Consider the bearish variant:
Note the similarity in sentiment.
Price action that creates an expectation of bullish follow-through. With hopes then smashed in a most sudden and extreme manner.
The current NQ scenario occurred across multiple candles, not just two. But from a human perspective, the outcome is the same. Hopes destroyed!
In the prior article on Bullish and Bearish Kicker Patterns,, we took the pattern next level.
Or in today’s example…
So let’s find a way to get in SHORT. And hold it for as long as we can.
With hindsight I should have just stood aside and waited for the first BPB Setup below the overnight low.
But the risk of that is a strong momentum drive with no BPB, leaving me waiting for the first PB Setup potentially well below the level.
So I traded from the open.
Look at your daily chart pre-session. Most days won’t offer a trap. But occasionally they do.
And you’ll be alerted to a potential trend day. And afforded an early opportunity to enter and HOLD.
Identify an invalidation point.
And trust the plan, until market action proves otherwise.
Happy trading,
Lance Beggs