Contraction to Bring Expansion before Good Friday
Edge Levels (ESM4): 5240-50, 5257, 5272, 5288, 5306, 5324
It’s National Tolkien Reading Day, so please tell a trading friend about this newsletter if you recognize not all those who wander are lost.
You can access the MGI document HERE for the latest Edge Levels and insights.
Video notes below, with key points bolded:
Today was a glorious, glorious day for premium sellers.
In fact, it was as good as it gets.
And with this outlier short premium victory
comes hope for trend traders.
The contraction seen today,
such utterly absent Volume and Volatility
leads to expansion - trend.
Side note:
A red Friday
followed by a red Monday
often signals inflection.
Yet good traders must react. Never predict.
So, let's review today and talk generalship1 for tomorrow.
You can follow along in my live trade log in the MGI document.
We filled the Gap mentioned Friday, yet I had no long interest in long trades after the Open.
An overnight extreme trades 90 percent of the time
and the channel pointed down.
So, despite a Single earlier in the session,
and the questionable probability of a second down day,
I sought a short opportunity.
Because Price is king
and the TPO was OTF lower.
Price seemed to be Accepting below Friday's structure
and RSI showed a Hidden Divergence.
This means a lower high in price coincided with a higher high in RSI.
Not standard RSI divergence.
Hidden divergence.
This is more reliable.
So, when I saw a delta imbalance, I opened the trade.
Then Price spent the rest of the day trapping.
Tomorrow, I'm just watching for a break of this channel.
My lean is bullish, as we haven't had four consecutive red days yet this year.
Yet, I plan to react. Never predict.
Because you never know if we might get a fourth consecutive down day
with Volume and Volatility to confirm the inflection.
Levels are in the MGI document.
And I hope to see you in the live stream tomorrow!
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You can watch a recording of this morning’s trade hunt above. Electronic vibes came from Marsh | Live from Anjunadeep Open Air Red Rocks.
Please feel free to join us HERE tomorrow!
Thank you for your attention.
Talk soon,
Mastro
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LEGEND’s word of the day. Means, “strategy.”