Monday. Most of the signals garnered from leadership mentioned in this blog are from the Opening and 1st Hour Time Period. Holding positions overnight is higher risk. And in the futures markets, protective stop-loss orders placed in the Night Session in anticipation of tomorrow's Opening outcome run the risk of not being executed at all. But sometimes the leadership of the SMH is like a road map of what will happen on the following day, and is worth the risk. For instance, scroll back a couple days to the previous post of Thursday, September 24. The subject was bifercation. The SMH was in an ABC upward correction while the Dow futures, the YM, was continuing its downtrend from the day before. Now study Friday's end-of-day chart above. Friday's YM was a Sequel to Thursday's SMH Prequel. But bifercation occurred again on Friday, signaling that most likely, the YM would follow the SMH right back down. If on Friday, at the end of the day, I had put up a blank chart for the YM, and asked you to take a position for Monday's Opening based on what you see in Friday's SMH, which way would you position your trade, long or short?
Join our chat room and get the advantage of having these signals in real-time, here at daytradingmethods.com