Some of the best trading opportunities is when the market surprises many with open positions in the opposite direction of where the market wants to go.
The 5 minute chart above shows that the longer term $TICK momentum is in a downtrend. For the first 50 minutes of the morning trading, the market remained in a narrow range, but below the 0930 ET open. On the 1 minute chart, many may have thought that the market may reverse and close the gap. The $TICK was making a higher high, and the futures price action was creating an ascending triangle. Then both the $TICK and price momentum turned south around 1024 ET. We then got a good break to the downside as many longs were forced to liquidate their positions, and a short trade opportunity was created.
Charles
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