This morning, we monitored the early action in the index futures without making a call as no clear pattern or setup emerged in the first 30 minutes that we could commit to. However, taking a step back and looking from a wider perspective, we called the short under the S1 level with a 7-tick stop. Notice how today’s blue S1 line was used on Friday by the market:
The trade triggered short at A, we took half off for six ticks to build a cushion at B, and continued to lower our stop throughout the day until the trade closed at C for a 16-tick winner on the second half of the play.
Sometimes, patience is the best plan.