This is one of the more fascinating lessons that I learned for Greg Capri @ Pristine.com in his ATS class formerly TPM II. Today price gaped above and traded above breaking the last high pivot area from the last two days of consolidation. Then price sold off hard breaking through the lower pivot area. Short traders were caught off guard as price retraced back up to the area of Minor and Major resistance and moved through this area as a knife would move through butter, but why? When price trades above and below an area of consolidation it becomes neutralized and should be dis-guarded, when looking directly to the left. If your eyes focused on just the wide range red bar formed within the last 30 minute of trading, there are no reference points for traders to react too, so price had no problem moving back up through this area. Price moved up to take out the mornings high, then consolidated over lunch to break out again this afternoon. What a day for a Friday of trading, have a great weekend everyone… Click on chart to enlarge…
QQQ 09062013
