Lately on NT I've been trying to take advantage of this pattern. The replay button starts off at 4pm, the markets range usually at the beginning, there is a breakout, it finds a bottom then pulls all the way back into that trading range, sometimes just below it or sometimes above it.
The trading date has been close to the last month and it could be because the sp500 is sort of in a range hence why the pattern is showing up frequently at the open (4pm?).
The problem is when there is a false breakout, sometimes the signal bar is very wide and the entry is too risky or in the other case its a huge momentum break out and you get chopped. After a few hours, ranges are established all over the place and its hard to tell where the target is and i find i get hammered. Only very reliable at the open so far.
Either way i was wondering if any one trades this sort of style or if any one has any thoughts or opinions about this setup being viable etc?
I apologize if the pic is too small.
By the way its the emini sp500.