Daily Plan 3/20/23
Good morning traders!
Just a heads up before we jump into todays daily plan, I sent out the Weekly Outlook yesterday so make sure to check it out.
Keeping it shot, I was looking for 3880-4000 range to stay true until we see a side break with a catalyst.
OVN we rallied into 3970s but without any reason for prices to move higher we began to sell back down to new lows. Ultimately getting down to 3880s VAL before a strong move back to Fridays close around 3950s.
Take a look.
Now this sets up the week in an interesting spot as we remain right smack in the middle of value. With this being said I will look for another dip into 3880 to long and a move up to 4000 to short. As this range begins to tighten I will move the range high & low closer together as the buyers / sellers will be doing so as well.
Take a look at the 5 minute chart to see how the range is holding.
As you can see we traded back up into the POC, an area where neither buyers or sellers are in control. Once above or below this we can start to assume one is in control but note we still need a catalyst for the move out of range.
Now this doesn’t mean we will be above POC (buyers in control) going into FOMC and automatically think we will see a range high break rather than range low.
The moment going into the event will mean nothing, everything said in the event will be the focus. We could very well get back up to 3970s before FOMC then sell all the way back down to other side of range 3880s.
Ideally we can go into FOMC with longs / shorts already with a cushion on the trade so we can hold runners and soak the entire move. Unless we see range high or low trade then this will most likely not be an opportunity that comes.
Make sure to also read this as this is detrimental to understanding what I do, Volume Profile is the soul of my trading.
Nearly every stock is at the swing level that was provided in the substack last week, go check it out: