July 19th 2010 TF

7/19/2010

Here are two charts.

The 60 minute chart on top shows that we are forming a wedge and we are about to make a big move out of it. We still could go sideways for a few days but the VIX is setting up for a big move and the TF is forming a nice wedge so right now is not the time to get lazy with any positions.

With prior post on the blog we had the 600 level which was actually 605 to our members as a important low. From there we had the 674 higher target as our projected high of the next leg. The TF went a few points beyond that level but the general area was a massive sell zone. From there we alerted all free and paid members to the fact that the low on July 1st would be a area to not be short at because this was a area that we could find strength. The TF went a little lower the following Monday then rallied back to the 640 level.

From that high on our nightly videos we were looking for the TF to make a move down to the 605 area again and now we have 60 minute blue bars saying this down move could be coming to a end. The thing to note at this point is that the ES and NQ still have room to fall so that puts the TF a a stop where we could go down and break the last 60 minute low.

There is a possibility that the market could go either way in this wedge and most of the time the price will hang out in the wedge longer than most people think and the market can get very choppy so we are noting that and trading accordingly.

Every night we provide all our members a nightly video that has our trading outlook and why. This is a great day by day look at the markets.

We break down the 60 minute chart into more time frames to get odds for each wave. Learning how to trade waves within waves is very important for any trader because that is how the markets natural flow works. It is you learning how to get targets ahead of time and then get a trading outlook so when the time and price is right you will have enough confidence to enter and hold the trade to the targets. This does take time to learn and that is why we provide all our members nightly videos to cut out the clutter and focus on good trading habits.

The next chart is the 3 minute chart from today. Notice how the market went down then we had blue bars and the indicator was peaking telling us to cover any shorts and to look for a move up. This is real time tools to help in making the decision to enter short or step aside because the market is at a high probability low that is most likely going to hold.

We also had blue bars telling us a big move was starting at 606.00 then the price rallied to 612.00. Our outlook going into today was that the 60 minute was going to base out and this can give you confidence that we have higher odds of making a move to the upside that we can trade. The stop was 1.8 on the last long trade.

Happy Trading,

www.eMiniSchool.com