Welcome to the video update for Thursday, the 17th. Trader Rick starts with a 4500 volume euro currency chart with a common pattern, the ab=cd, which in this case, is a bullish pattern. See how this pattern played out in Wednesday’s trading.
In the ES, the pattern was a trend day up. See what the only non-confirmation was for a typical trend day pattern. Watch the action in the opening range, where it takes place in relation to the high of the previous day. Know where the upper value area is for another clue. Note how price stair-stepped up during the trading session and shallow the retracements were. Price closed near the high of day.
It’s important to recognize a trend day as early as possible in the trading session and then avoid the temptation to sell divergences in uptrends, as today was, unless you are a skilled scalper. Find a way to trade with the trend….because it is your friend!
Good trading!
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