Narrow-range half-day holiday sessions provide great structure from which we can trade.
We discussed this idea previously. You might recall this social media example from June.
Zooming into the 30 minute chart from that prior (June) example, we see how the narrow-range session provides both directional preference and setup locations.
I’m not a fan of trading holiday sessions.
But I love the day after, which provides absolute clarity over what direction I should be trading. And levels I can lean against for these trades.
So last week provided a unique situation… two half-day sessions back to back.
The good news is the same concept applies.
The normal plan is to project the range high and low forward. And treat it much like an “opening range” which will influence our trading over the following sessions.
This time there is a slight variation.
At least until the market proves otherwise.
So let’s trade…
And now the 1 minute chart as the session gets underway.
Yeah, I get that you want to see it simple and easy.
But that’s not how price works. The reality is that it will often be a mess of tests, retests, probes and all manner of other mind-fuckery designed to try to shake you out of the position.
Accept it. And find a way to work with it.
Still… the concept is simple.
Extend the narrow range holiday structure forward.
Use it to establish a bigger picture preference – LONG above and SHORT below.
And use it as an area to seek trade opportunity.
Price will not want to remain in this tight narrow range. It wants to expand higher or lower. Find a way in and ride with it.
Happy trading,
Lance Beggs
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Hi Lance,
I found this post very interesting, but sometimes I get lost in the details. On the last chart, you opened and closed several times before catching the move. It doesn’t seem you were using the 1-minute chart to make those decisions. Would it be possible to devote next week’s blog to how you managed those entries and exits, I think many people would be interested in the signals and lower timeframe analysis you were using to make those decisions.
Many thanks
Chris
Hi Chris,
I used to often include lower timeframe charts to give more trade detail, but found it was distracting people from the main point of the post. In this case – look for trade opportunity off the edges of the holiday structure.
My plan now is to narrow focus to ONE key point per article. And then we can address other points later, if desired.
Trade entries & exits…
The trading timeframe was 1 minute. This is where the trend structure is defined, setup areas identified and decisions are made as to whether to trade or pass in these setup areas.
The lower timeframe was the 15 second chart. This is where the trading timeframe analysis and decision making is fine-tuned. And where trade entry timing occurs.
The YTC Price Action Trader details the TTF setup areas and the LTF patterns and methods for timing.
A good exercise might be to access a 15 second chart for NQ (emini NASDAQ futures) from Monday 28th November. Place horizontal resistance at 11766.25 (the low of the holiday session). And then look to the chart structure in the areas (and times) that the TTF shows trade executions. Try to reverse-engineer my decision making. See if you can find reasons to enter in these areas at these times.
Cheers,
Lance