Good morning, Daily Direction readers!
Waiting for a market to get into the right position so we can buy it can be frustrating. But patience pays off! And we can now say that about the E-mini Russell 2000 (RTY).
Both the long-term and short-term directions for the RTY are now up!
The market has broken the counter trendline within the channel and moved bullish within the buy zone. That means we are now actively searching for opportunities to buy the market.
Trendlines are important because they give us an idea of a market’s overall direction, both in the long-term and short-term. If a market breaks a trendline, we know that a direction shift is happening.
For the RTY, we’ll watch our one-hour timeframe chart to look for a chance to jump into the market as it continues its march toward the top of the channel.
Our daily resistance price point is 2487.5 which is about +2700 ticks away. We’ll keep trading the RTY as we move toward that line.
Let’s look at the timeframe analysis of the RTY to get a better picture of the current setup:
Daily Timeframe Analysis
Glancing at the daily timeframe chart, we can see that the RTY has clearly broken through the counter trendline in the middle of the channel and turned bullish. The market should continue to climb toward our daily resistance of 2487.5.
As the market plays out its bullish push, we’ll actively look for opportunities to buy the market on its way up.
Keep in mind that we buy at low prices as a market is moving through the buy zone, then sell as it hits high prices along the way. Stick with that basic principle, and you’ll be on your way to growing your trading account.
We’ll want to watch our one-hour timeframe chart as the RTY continues to push bullish. For more information about the different timeframe charts, be sure to check out my free educational resources!
We’ll trade the RTY until it either hits resistance and is too high to buy or turns bearish and heads back down toward the bottom of the channel.
Not sure how all of this works? Check out my resources on how to read market indicators!
The Bottom Line
We’re actively looking for chances to buy the RTY as the market moves upward toward our daily resistance price point of 2487.5.
As long as the market stays in the buy zone, making higher highs and higher lows, we’ll trade it along the way.
Be sure to watch your one-hour timeframe charts as you look to enter the RTY. Our timeframe charts are the best way to see the latest movement trends in a market. Without them, we risk making unwise trading decisions!
And if you’re ready to take the next step in working toward a better trading strategy, be sure to check out my resources to learn more about my setups, charts, and the best way to approach the futures market.
Keep On Trading,
Mindset Advantage: Better Today
Look forward and forget the past. At least for today. Adopt the mantra: Better today than yesterday. Better tomorrow than we are today.
The journey to consistent profits is not built with a trade or a single session.
We all know this… but then we proceed to hold positions longer than we should, move stops that we shouldn’t and trade outside our plan.
How about one day at a time?
Traders Training Session
Stay tuned for my next edition of Josh’s Daily Direction.
And if you know someone who’d love to make this a part of their morning routine, send them over to https://joshsdailydirection.