I was so overwelmed by the number of trade setups found today that I did not think to look for trade divergences. There was a divergence at both the bottom and the top of the YM’s range today. Either trade would have resulted in a two target win. Here’s a revised chart with the divergences. The chart shows the importance of at least not trading against divergences.
The YM had a good range today but never provided any real follow through on trades. It spent the day ranging between the 13330 and 13428 daily support and resistance areas. The volatility was very high with several price bars were larger than 40 points. Because the market passed through the 13366 and 13393 daily SRs several times today, there were many more trade setups than usual today. Since there was such little follow through, only 3 out of 7 trades reached their first target. The other 4 trades setups would have stopped out for losses.
