Back in the Saddle

 Hello world. It's been a minute. 

Entry today is on the ZNM23. After a big move down this morning, it is at 100% of ATR for the day. So, normal retracements will only cause issues. 

Setup:

  • Price is below the Ichimoku cloud on Daily, Hourly and 10 minute charts. Therefore, bearish.
  • ATR is at 100% for the day. So no normal 8-tick retracement.
  • Throw a fib on the big move at 1000hrs, and 50% retrace is at 111'065
  • 16-tick reversal would be 111'060
  • Choice: go with the fibs. Volume is low in that area, so I anticipate price to move through easily.
  • Entry short at 111'070 (fib 50% -1 tick). Stop 10 ticks (1R). Target 4R


Update: Been away from the computer for a bit. At 1210hrs, price came up to 111'065, then went back down. 16-tick would have worked.




Now, the choice is whether to just bid an 8-tick reversal or hold for 16 on the day. Have a 16-tick from the last low standing. See what price does. If not filled, will look at this evening.

Things to ponder: Fib retracement would have worked very well on ZB....

Update 1530hrs: Market is not moving anymore for the day. Cancelled order. Will look at 8-tick reversals at approximately 1900hrs (market has been open for an hour)

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