Afternoon,

The Value Area for tomorrow for the Russell 2000 e-mini’s: 734.70- 740.10.

The Russell 2000 e-mini’s gaped lower today, opening right at the VA high and the pivot and the 50% fib as measured from the TS pivot at 14:36 pm CST to the TS pivot at 15:15 pm CST from the day before. There was an IVB (inside vertical bar)that formed at 8:36 am CST with a long entry of 731.90. The next trade happened after the market traded up, then back down to the same area as described above with another IVB forming at 8:51 am CST with a long entry of 731.20. The price went up and a IVB formed. The exit was below the second IVB at 9:00 am CST with an exit of 731.20 for a break even trade. Here is the chart for trades 1 and 2.

Trades 1 and 2

Click on chart to enlarge.

There was a trader’s trick set-up above the 56 EMA after a trend line break. The 1st hour high was right above so I took the trade with the idea that I would watch that area very carefully. The time was 9:27 am CST with a long entry of 733.40. The trade took about 1 point heat before making the objective. The market then rallied to the 161% fib area with a IVB. The short entry was at 737.00 at 10:00 am CST. Price came down nicely and another IVB formed. The exit was 1 tick above the IVB at 10:12 am CST with a exit price of 736.50 for a net profit of .50 points. Here is the  chart for trade 3 and 4.

Trade 3 and 4

Click on chart to enlarge.

The market traded in a sideways base for the next hour. It pulled back to a long term trend line and formed another IVB. The long entry was at 11:48 am CST with a long entry of 736.80. The price went up to the double top area from 9:57 am CST this morning forming another IVB. The short exit and entry (stop and reverse) was at 11:57 am CST with a exit/entry of 737.50. The long trade made .70 points and the short trade made the objective. Here is the chart for trades 5 and 6.

Trades 5 and 6

Click on chart to enlarge.

The market rallied strongly and formed another IVB. The time was at 12:39 pm CST with a short entry of 740.30. The next trade was a trader’s trick set-up after a trend line break at 13:36 pm CST. The long entry was at  739.00. The final trade of the day was an IVB at 14:00 pm CST with a short entry of 740.70. The exit was above the IVB at 14:06 am CST with a price of 740.70 for a break even trade. Here is the chart for trades 7, 8, and 9.

Trades 7, 8, and 9

Click on chart to enlarge.

So for today, we had a few more trades than normal. There were 9 valid set-ups with 7 winning trades and 2 Break even trades for a net profit of $1120, ignoring slippage and commissions.

Hope you enjoy the new information on the Value Area and it helps you catch a few whoppers.

Best regards,

Ron

This is not a solicitation to buy or sell. 
There is a risk in any investment.