Textbook Reversal Setup
Textbook Reversal Setup
Folks, this is like taking candy from a baby. Today we enjoyed another textbook Zero reversal setup:
I managed to nail the timing spot on as I draw the descending ‘resistance’ line on the Zero Lite just a few minutes before it got breached. From there it quickly reached the zero mark and I decided to paint a time line in cyan to give you guys a little heads up.
My thinking? Pretty basic at this point: There was the clear and present danger of a VWAP reversal as the divergent ZL signal did not support a continuation of the ‘walk down’ we saw in the first half of the session. Either we would churn sideways and paint a floor or proceed directly toward VWAP – as it turned out the latter happened.
From there it was pretty happy trading as the ZL remained above its zero mark for the remainder of the session. Clean six handle trade with very little entry risk. That’s the way we like it 🙂
Cheers,
Mole
