good example of this concept again today.
VWAP std dev bands compress creating conditions for short-term trending auction. look how there is a final test of the
VWAP after a push down which gives traders excellent reward-risk location.
todays chart also shows how you can make good money in a coil break that eventually fails. a coil-break is a 'go-with' in the short-term. the failure of a coil-break can lead to a bigger move in the opposite direction (this is a Rashke concept -- not mine).
todays chart was not quite as clean as recent days in that price did not tighten exactly on the
VWAP number -- only near it... but the
VWAP number was still a very valid pivot.
the Dalton concept here is that there is usually a short-term opporunity to 'go-with' a break away from a balance. I traded a position scalping out 1/2 and putting it back on during pullbacks that didn't break the downtrend -- I also kept a core short that I eventually covered when the market petered out. just an awesome day to trade YM.
http://bp3.blogger.com/_5h-SWVGx6Ms/...oil+Break2.bmp