Mastering Momentum: Friday's Trading Triumphs

 Friday's trading session unfolded with a burst of momentum, as price action showcased the intricate dance between short-term fluctuations and broader trend considerations. This blog post delves into the strategic decisions made during the day, highlighting the art of identifying trend cues and seizing opportunities.

Identifying Opportunity in Intraday Decline: As Friday's session began, price accelerated into the London open, reaching a peak at 4840 before showing signs of fading momentum. Despite the initial decline, a careful analysis of the hourly chart revealed a robust trend, with PPMs 2 and 3 comfortably above their derivatives and positive slopes. Sensing opportunity, a partial-size long position was initiated as price held the hourly 21ma at 4818.

Adding to the Position: Amidst the price recovery, further confirmation emerged as the PPMs on the 5-minute chart began to bottom out, projecting an upward and positive slope. Recognizing the strength of the hourly PPM trend mode, additional shares were added at 4825, anticipating further upside potential.

Navigating R1 Resistance: As price drifted towards the daily R1 resistance level at 4823, a brief consolidation ensued. The positive projections of the 5-minute PPMs, coupled with price maintaining its 10ma, provided confidence in the trade's resilience. Subsequently, the upward drift continued, reaching the initial profit target at 4835, just below the R2 target on the daily chart.

Missed Opportunity and Valuable Lessons: Reflecting on the trade, hindsight reveals a missed opportunity to capitalize further on the bullish momentum. Despite PPM 1 and 2 hitting peak values, PPM 3 was still projecting a positive trend. This insight suggests a potential buy-the-dip opportunity at the 40ma on the 5-minute chart, aligned with the positive slope projection of PPM 3.

Mastering the Demand Line: A key lesson emerged as the 40ma on the 5-minute chart, often considered a resistance line, transformed into a demand line when aligning with the positive slope projection of PPM 3. The price bounced off this demand line, illustrating its significance in guiding trades.

Extended Trend Mode and New Highs: The day concluded with price exceeding expectations, surging to 4865, above its RTX on the daily,and consolidating around 4873. The hourly PPMs hitting extended trend mode at .50 and the positive momentum maintained on the 5-minute chart underscored the importance of recognizing when a trend may have further room to run.

Friday's trading session was marked by successful trades, valuable insights, and the mastery of momentum. As the market presented opportunities and challenges, the ability to read PPM signals, identify demand lines, and embrace flexibility in strategy proved pivotal. The day's successes and learnings contribute to the ongoing journey of refining trading skills in the ever-evolving financial landscape.

Comments

Post a Comment

Popular posts from this blog

S&P Micro Futures Forecast for 6/25: Navigating Support and Resistance with the Bob Kendall Indicators

Image
As we enter Tuesday's trading session after a down day Monday, the S&P Micro Futures present a nuanced landscape. Utilizing the Bob Kendall indicators on the daily chart provides us with essential insights into potential market movements and key levels to watch. Daily Chart Analysis Support Levels: S1 and S2 Levels (5507/5497): These levels, along with the 10-day moving average (10MA) at 5516, are crucial to watch. PPM1, related to the 10MA, is at 0.15, indicating it's not in trend mode (0.25) but still has a positive slope. This suggests these support levels might hold, though they may not be the strongest. STX Level (5477): If S2 doesn't hold, the next significant support is the STX on the daily chart, which aligns with S2 on the weekly chart at 5479. 21-day Moving Average (5448): This level is also strong short-term support, with PPM1 indicating a 0.15 positive slope. Resistance Levels: R1 and R2 Levels (5526/5536): On the upside, these levels provide immediate r...
Read more

S&P Micro Futures Forecast for 7/2: Monthly, Weekly, and Daily Analysis Using the Bob Kendall Indicators

Image
As we enter a new trading month, it's time to analyze the S&P Micro Futures using the Bob Kendall indicators. Given that July starts with a short holiday week due to the 4th of July, we can expect lower trading volumes and potential range-bound movements. Let's dive into the monthly and daily charts to outline support and resistance levels for the upcoming trading sessions. Monthly Chart Overview PPMs Analysis : PPM 1 and 2: Both are above their derivatives and remain in trend mode (>0.25), indicating strong long-term support. PPM 3: While still above trend mode, it is starting to pierce its second derivative, which could test its positive slope. Key Support Levels : 10MA: Long-term support at 5124. Weekly Chart Analysis The market grid is starting to flatten out, which suggests potential range-bound trading for the week. Support Levels: 10MA at 5418: This level provides strong weekly support and maintains a 0.62 level on PPM 1. S1 and S2: Strong support at 5501 and 5478...
Read more

S&P Micro Futures Forecast for 6/10: Key Levels and Insights Using Bob Kendall Indicators

Image
As we head into a new week, it’s essential to assess where the market grid stands and how it will influence the daily analysis. For tomorrow, 6/10, using the Bob Kendall indicators, here are the key levels and insights to watch out for in the S&P Micro Futures. Weekly Chart Analysis Support Levels: S1 at 5323: This support level coincides with the 10 and 21-day MAs on the daily chart, reinforcing its significance as a support zone throughout the week. S3 at 5251: This level is crucial as it aligns with the 10-day moving average (MA) on the weekly chart, providing a strong support base. Resistance Levels: R1 at 5387: This resistance level is slightly above R1 on the monthly chart at 5378, marking it as a critical resistance point. R3 at 5459: This aligns closely with R2 on the monthly chart at 5471, indicating a major resistance zone if R2 holds. Daily Chart Insights for Tomorrow  Support Levels: S3 at 5323: This level aligns with the 10 and 21-day MAs, providing a robust suppor...
Read more