This symbol is making all the right moves…

Good morning, Traders!

As we get back into our normal trading rhythm for this week, we’ll take a look at the Russell 2000 (RTY) as the market’s direction is up. It’s broken through the counter trendline and has a +411 tick rally to fulfill before hitting resistance.

What does that all mean? Take a moment and read this article on how I predict future price movement in a market to learn more.

As the RTY approaches resistance, we can expect one of two things to happen. First, the price could hit resistance and turn downward via a sell-off. Remember that sell-offs shouldn’t scare us away from trading. We wait for the price to bottom out and watch for new entries as it rebounds again.

Second, the price could continue to rally and break through resistance. It all depends on how confident the buyers are.

Let’s examine our timeframe charts and see how the RTY is currently trending:Daily Timeframe Analysis

The overall direction for the RTY daily timeframe is up. We’re seeing higher highs and higher lows. The market is headed to resistance (upper blue line) as it moves +411 ticks up and fulfills the daily up Fibonacci extension of 2327. For more information about how Fibonacci works, check out this quick article I wrote!DAILY TIMEFRAME

The direction within the daily timeframe is up

1-HR TIMEFRAME

The current direction for the one-hour timeframe is up

THE BOTTOM LINE

The U-turn direction remains up

Chart the channel

The daily timeframe for the RTY is in an up trend. The price is headed to resistance (upper blue line) as it fulfills the up Fibonacci extension of 2327

As we approach resistance, it’s a good idea to turn to the one-hour timeframe and watch for low prices in the buy zone. That allows us to manage entries into the market as it continues to move up.

Once the price hits resistance, we can expect a retracement (temporary drop in price) as sellers take over and drive the price away from resistance.One-Hour Timeframe Analysis

Turning to the one-hour time frame, we see that the RTY’s direction is up and fulfilling the up Fibonacci extension. The market has broken the counter trendline and is climbing through the buy zone. We can expect the price to move another +411 ticks as it approaches resistance. Go check out my article on counter trendline breaks for a quick refresher on how they work. 

Chart the channel

The direction for the one-hour RTY timeframe is up. The price has broken through the counter trend line( diagonal grey line) near the bottom of the channel (middle grey line) 

We’ll use the one-hour timeframe to watch the RTY as it continues to move upward toward resistance. That allows us to manage our entry points for the RTY and buy at low prices within the buy zone.The Bottom Line

Both the long-term and short-term directions for the RTY are up. The market is fulfilling the up Fibonacci extension as it heads toward resistance. We can prepare for a retracement (temporary price drop) as the market continues to go higher. Right now, we’ll watch our timeframe charts and look for opportunities to buy the market at low prices within the buy zone.

To learn more about how timeframe charts work, how I use candlestick charts, and what exactly a tick is, read my free article that talks all about charts and tick movements here!

The Bottom Line

The overall direction for the RTY is up as the price continues to move higher within the buy zone

Why wait now that you have the information needed to begin trading RTY futures? This is your opportunity to start profiting from winning trades. I’ll show you how to do it regardless of your skill level, even if you have none!

Keep On Trading,

Mindset Advantage: Make Today Better

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?

Start with today. Tomorrow comes later.Traders Training Session

Long timeframes vs short timeframes

Trading Longer Time Frames vs Shorter Time Frames Tutorial

Josh Martinez

Josh Martinez

Josh Martinez is an elite Analyst who’s been actively trading the financial markets since 2011. He’s known as one the leading innovative traders in this industry due to his his cutting-edge strategies.

Josh first burst into the scene when he took an initial deposit investment of $500 and turned into over $39,000 in just under 2 years.
Josh’s trading articles have been featured in Your Trading Edge, The FX Street, Trader Planet, Forex Crunch, Trading Pub, and Equities.com.

In addition to trading, Joshua has also trained thousands of traders worldwide. His strategies and systems have helped others find success in the market

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