Thursday, April 30, 2009

Plans A and B

Here is a five minute bar chart of the e-mini day sessions. I am long two units at an average of 879.00. If plan A for this trade works, I expect to sell these longs near the top of my range estimate for today (blue rectangle). Plan A will remain in place as long as midpoint support at the higher of the two purple dotted lines holds.

If that support is broken I would expect the market to drop to the lower purple dotted line. This is midpoint support based on yesterday's late reaction. I would again be a buyer near that level, this time with the expectation of a move to 890 or so.

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