Summer doldrums coming to an end!
Posted on 24. Aug, 2010 by Mohan in Boomerang Scalp Trader
Good morning and welcome to today’s Boomerang Blog update.
I wanted to put up Monday’s chart in a condensed form so we could take a look at how it appears the summer doldrums may be starting to end.
The market on Monday had potential to turn bullish with prices holding over 1074 and still does. However, there was some presistent bearish grind in the market that just wouldn’t let go.
Earlier the tape had been pretty bullish looking on the surface bias but after running above 1078.25 (Mohan’s key number to sustain for a new bullish run) the market just fell apart along with the tape weakening.
This was after the first hour ended. Then what did the market do? It just sat there going virtually nowhere.
These are usually the times when you will want to really watch the Trade Bias Selector and the Force Index as they hover around the Zero line with mixed colors.
If you see this happen I’ll give you a secret that I use to determine what to do. First, after the “stand aside zone” is over (this runs from usually 12:45 est to 2:00 est) I look for a reaction just after 2:10 or so est. I will take a Boomerang/TBS trade then and watch all the normal parameters to see if the trade is going to take off.
If nothing happens, the market goes quiet or the trade gets stopped out for a small loss then I wait again for 3:00est. That is when you can often look for a final hour move IF the “stand aside zone” was pretty quiet and there was no significant reaction at 2:15-2:30 est.
Thats what we saw on Monday. After seeing the idea of a bounce back up over 1074 fail again, the market started turning very negative and down they went.
On the previous blog I showed you a relatively simple and low risk way to take 2 point scalps just using TBS. I outlined those on the chart. Remember this idea above about the time frames. These are times market specialits and high speed traders are going to try to work some plan. You want to be on that side of the volatility and the TBS and Boomerang Force Index will get you on that right side.
Hope this assists you and feel free to email me if you have any questions at boomerangtrader@gmail.com
all the best of success. Johnny
Click here to learn more about the Boomerang Currency Trader
Click here to learn more about the Boomerang Scalping System
