Happy Friday, Daily Direction readers!
In today’s Daily Direction, we’ll take a look at the E-mini Russell 2000 market (RTY) as the long-term direction pushes upward.
While the market has pushed above the daily resistance, we need to make sure it closes above that mark before looking for opportunities to buy the market.
That’s is why timeframe charts and trendlines are so important for this strategy. Without them, we have no point of reference to see how the market has reacted over specific periods.
Seeing previous patterns within a market helps us predict how the market will react in the near future. And that’s how we make wise trading decisions that can lead to more profit!
Let’s take a look at the RTY timeframe analysis and see how previous market movements could impact the current trend:
Daily Timeframe Analysis
The market is clearly above the daily resistance line in our daily timeframe chart. If the market stays above that line, we’ll look for the RTY to make higher highs and higher lows as it pushes upward.
But we need to make sure that the market will stay above that resistance line. If you look back to the left of the chart, you’ll see that the RTY has given us reversals from the top on multiple occasions. We don’t want to buy the market and then see it dip in price again!
The long-term direction is up for the RTY
We’re waiting to see which way the short-term direction breaks within the RTY
The RTY has pushed above the daily resistance, but will it stay?
The RTY is pushing above the daily resistance line, but will it stay there?
As the market continues to rise, we’ll want to keep an eye on our trendlines to see whether the trend shifts unexpectedly. And that’s why accurate trendlines are so important for this strategy.
The Bottom Line
This is a situation where patience pays off. Trying to jump into the market too soon can result in losses. And that’s what we’re trying to avoid.
Market history can be a useful tool in helping us decide when to execute our buy-in strategy. And as you can see in the RTY daily timeframe, this market has a history of dipping back down toward the bottom of the channel after hitting resistance.
We want to use our trendlines and timeframe analysis to determine if the RTY is truly closing above resistance. Once that happens, we’ll turn to our one-hour timeframe and look for a chance to get into the market!
The RTY has a history of retreating from the daily resistance level within the channel
Without my strategy, you’d be absolutely lost when dealing with a scenario like the one we’re witnessing right now in the RTY. That’s why it’s time to put my skills and experience to work for your trading account! You don’t want to miss out on this opportunity.
Keep On Trading,
Mindset Advantage: Forgive And Forget
Move on with your trading and leave the past where it belongs…. in the past.
It’s a recurring theme. It happens over and over again. You can feel it the second it comes on. The market is going to do ‘it’ – whatever ‘it’ is – again… to you and your account. The flashbacks start pouring in. It’s impossible not to relive it all.
In an instant, a calm Tuesday morning is now haunted by a trading session ages ago. Just when you thought you would never, ever, ever find yourself in that situation again.
It’s time to move on. Sure, mistakes repeat themselves, but the key to getting past errors and losses of the past is first to embrace them. Own them. Take them as they are. After all they’re yours. Then move on.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.com/ to get signed up!