Remember the 'flat top triangle' rule we saw on Nov 26th? Didn't work out did it? Well it looks like we have another "Rules are for fools" lesson here.
The FRO is signalling "HMH" or that price will exceed the 1112 level soon.
While these formations are somewhat useful, they are not as reliable as the FRO when it comes to risking your capital.
On the 60 minute chart above, we clearly developed a bottom after an attempt to plunge price down Friday afternoon. And I'm sure a lot of traders, aka loser's, lost money when buying mysteriously came in at 1095.50. And that's why I call this "Forensic" trading. This kind of buying causes panic, reaction buying to cover those short positions.
So now we know the difference between "Technical" trading and "Forensic" trading. Technical relies on formations in the candles/bars, support and resistance levels, trendlines and a whole bunch of other analysis tools. Forensic Trading is strictly watching buying and selling pressure which is expressed in the FRO. Buying and selling pressure can't lie.
WARNING: Futures trading involves risk. You can lose all of your money. Consult your government licensed financial adviser to determine if trading is suitable for you.
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