Oil inventory number and FOMC decision ... Market opened this morning with a gap up so gap rules were in play : Gap Rules: a. Go with all gaps that aren’t filled relatively quickly. Go with a gap on a failed attempt to fill the gap that slows in tempo and shows declining volume. This includes gaps that fail to fill or are filled to the tick and then price is rejected. b. If the gap is filled and value cannot at least become unchanged, relative to the prior day, a later day move in the direction of the gap has higher odds of occurring. This is more easily recognized when you have internalized the concept of trading value rather than price. c. If the gap is filled, the initial destination trade becomes the high or low of the previous pit session depending if it is a downside gap or an upside gap. These rules have to be taken within context :
- Overnight inventory long ( Pivot 55.00 )
- Short term inventory long.
- Daily, weekly and monthly in up trend.
- Yesterday's and previous day were showing poor high ( have been repaired though )
- Poor low from 10/30.