There are several key levels during the day. Yesterdayʼs close is one of the biggest. Here we see it in action. Tuesday, December 16, saw a gap down open with no follow thru down. Price rallied up to near yesterdayʼs close. It failed to break up through it on itʼs firs attempt. The second try at 10:15 showed a Yum-Yum break into positive territory. Price then congested and pulled back to yesterdayʼs close. Slightly breaking below the level. It quickly sprung back up and had a 4 Close Reversal at 10:50. This carried price dramatically higher for the rest of the morning.
There are three possible areas to enter a long trade here:
1. One tick above yesterdayʼs close via a resting stop order.
2. On pullback after Yum-Yum break.
3. On 4 Close Reversal at resumption of trend up.