I love the pre-session action from NQ on Tuesday…
Dropping now to the 15 minute chart and viewing the action leading up to Tuesday’s open:
I must admit – I do like traps in the market structure.
I sent out the following post via social media, prior to the open on Tuesday.
Because there was emotion in the market (monster trend day and traps on failed continuation higher).
And emotion can create opportunity.
This doesn’t mean it’s easy.
Cases can be made for movement higher OR lower.
So I’ll visualise and prepare for both these options. And also for a potential opening chopfest as both bulls and bears compete to get the initial direction right.
But I really like this option.
For clarification – I’m not talking about an all-day trend lower. Yes, it’s one potential outcome. But until proven otherwise, experience suggests that a more likely outcome is a rangebound market within boundaries formed by prior day or overnight S/R levels.
See here for example – https://yourtradingcoach.com/trading-business/day-after-monster-trend-day/
My expectations are simply for a potential opening drive lower. After that… I’ll reassess.
Side Note: These first and second pullback entries are NOT standard “textbook” pullbacks. They’re single candle pullbacks with the structure only visible through lower timeframe charts. Not the kind of thing you would trade in a normal steady-state trend. But in the early stages of an opening drive, they’re often the only pullback opportunity available. So if you’re not assessing the sentiment of market participants prior to the open… if you’re not sensing emotion and the potential for price to drive with strength… then you’ll not be ready for this opportunity.
Things were quite a bit more difficult from here. Our expectations for a rangebound market were correct as the remainder of the session was held within key levels from the overnight action.
But the opening drive provided us with an excellent start.
Only tradeable because of this…
Not all sessions provide an opening drive. Most don’t.
But when they do… the clues were there in the pre-session analysis.