Monday, Tuesday and Wednesday showed some picture-perfect day trading Rules of Thumb. Monday was a Reversal day, Tuesday was a Trend day and Wednesday was a Consolidation day.
Watch out for Consolidation (or low range) days. You can be so amped after a Trending day – like Tuesday’s 40 point range – that you’re tempted to trade Breakouts and push your profit targets out. And that’s usually a losing strategy. Much better to trade the Reversals and keep your profit targets modest.
Good luck with your Emini trading.