Let’s strip the charts of all indicators and focus on the simple planning levels for short-term and intraday traders:
On the “Double Bottom” reversal up off the critical “Make or Break” Support level of 1,740, price broke the 1,755 midpoint this morning with a gap-up that set in motion today’s intraday trend impulse straight to the 1,770 target.
That’s where we stand currently in the intraday world and we’ll continue to use 1,770 as the overriding strategy level.
Among the other strategies you use to plan your trades, sometimes it’s a good idea to focus on price action itself and the key focal levels traders are watching.
Here’s another viewpoint of the importance of 1,770:
In general, we’ll look for bullish strategies short-term on an “Open Air” breakout above the 1,770 level (give it a couple of points of “wiggle room” for traps – at the moment, price is trading into 1,772) which could open a play toward 1,800 or the 1,810 region.
Otherwise, a downward move here against 1,770’s resistance opens the path again for 1,755 or even 1,740.
Incorporate these levels into your other strategies/indicators and adapt in real-time as price moves toward or away from these levels.
This article is brought to you courtesy of Corey Rosenbloom from Afraid to Trade.