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Key Market Day Key Market Day does not imply that the particular trading instrument discussed below will continue in the direction of the pattern signal. It implies that the trading instrument itself and similar like trading instruments had impact on other different types of futures markets. The Hang Seng HSI futures has been a good market to trade for some of our clients the past few years and the price drop the past week or so setup nicely this bullish pattern signal... Regardless if it had help or not from other Asian markets moving strongly upwards a few days before the key Bank of Japan's policy board meeting. Also, although there's no volume histogram on the chart below, you should be able to tell via volatility analysis that the volatility was declining soon after 12:05. Declining volatility is usually a good support for a price pullback allowing for bullish traders to add to their existing profitable position or to encourage other traders to jump on the band wagon sort'uv speak. It's also a good time to setup a short squeeze for those traders that were counter-trend trading via trying to short after 15:00. Trading Instrument: Hang Seng Futures HSI Price Action Pattern source: Swing Trading (STR)
Click on chart to view actual size If you have any questions about either the price action involving the pattern signal or the pattern signal itself... You can send an email to questions@thestrategylab.com Also, to view the archives of what we consider to be key market days along with the clues associated with the key price action...click here. Disclaimer: The above chart in the key chart stories is for illustration only and they represent trades (real money or simulator) of those traders that have access to either our special free strategy, trading reports or trading manual. To read our full disclaimer statement...click here.
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