Here is a five minute bar chart of the e-mini day sessions. I am long one unit from 903.75.My range estimate is still 895-915 (blue rectangle), so you are probably wondering why I bought nearly 10 points above the low of my estimate.
It is my conviction that the worst mistake a trader can make is not to have a position in a trend that he has foreseen - this can easily happen if he, for whatever reason, anticipates a temporary reaction within this trend. To avoid this problem my rule is to buy normal reactions in an uptrend after new extremes which are made on normal volume. Today the market rallied has high as 912.50 before the pit open and then came down about 11 points. This was a reaction as big as yesterday's (purple rectangles). I went long just ahead of the midpoint between the 1067 high and the 739 low which stands at 903 (red dashed line). This was also near yesterday's close which gave me a second reason not to wait for 901.
My plan B is to lean on midpoint support (purple dotted line) which stands at 899.50. Any weakness below that level will mean that the market is headed down to 875.
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