Afternoon,

The Russell 2000 opened flat and traded up in the first few minutes, pulling back to the 50% fib area as measured from the TS pivot at 14:57 pm CST yesterday afternoon to the TS pivot at point 2 at 8:39 am CST followed by an Inside Vertical Bar (IVB). Entry time was 8:54 am CST with an entry of 730.60.  The price broke through the 1st hour high followed by a trader’s trick set-up. The time was after the forth lower high at 9:48 am CST with an entry of 734.30.  The trade was up slightly when an IVB bar formed at 10:27 am CST. Exit should have been 1 tick below the IVB at 10:27 am CST at a price of 734.70. The chart is a little confusing as the exit for trade 2 was put under trade 1. Trade 1 made the objective and trade 2 was stopped out for a .40 point profit. Trade 3 was the same bar as the exit for trade 2. In other words, you could have shorted the IVB at 10:27 am CST just as you would have been exiting the trade 2 (stop and reverse). Here the chart for trades 1, 2, and 3.

Trades 1, 2, and 3

Click on chart to enlarge.

Trade 4 was a trend line break followed by a trader’s trick set-up at 11:27 am CST with an entry of 732.90. The trade was up 1.70 points and the stop was moved to break even. The price came back to with in 1 tick of stopping out before making the objective. HAD that trade been stopped out, there was an IVB (shown on chart) at the 56 EMA and the 60% fib as measured from the TS pivot at Point 1 at 11:36 am CST to the TS pivot at point 2 at 11:51 am CST. Here is the chart for trade 4.

Trade 4

Click on chart to enlarge.

The price went up strongly until it reached the 161% fib area as measured from the TS pivot at point 1 at 11:51 am CST to the TS pivot at point 2 at 10:51 am CST. There was an IVB that formed at the time of 12:54 pm CST with a short entry of 735.90. Here is the chart for trade 5.

Trade 5

Click on chart to enlarge.

The final trade was a trend line break followed by a trader’s trick set-up. The time was 14:21 pm CST with an short entry of 732.20. Here is the chart for trade 6.

Trade 6

Click on chart to enlarge.

So for today there were 6 valid set-ups with 6 winning trades for a net profit of $1040, ignoring slippage and commissions. With the addition of the IVB set-up, our results have improved dramatically. As I have stated, I am  comfortable with using a margin of $5,000 to trade 1 contract. Today alone, trading 1 contract and making $1040, the return for today alone would have been 20%. I hope that you are beginning to see how the IVB works with the other 2 strategies taught on my blog. BTW, I stated yesterday that the IVB has the potential to make more than the 2 point objective that is our objective. As a testament to that, I took the IVB at 12:24 pm CST and held the trade for a 3 point profit. There are many of the IVB set-up that are making way more than the initial objective.

Hope that this new set-up is helping you catch more fish.

Best regards,

Ron

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