Inventory day.....not my best day for sure and I am not a fan of waking up to the end of a nice move but it seems like it happens quite a lot. Therefore, I've had to adapt to waiting until something different happens or taking what is essentially a trend continuation trade. This is fine if its the first pull back after the new trend gets started but once its had a pull back or two, I start getting less optimistic about the prospects of taking that third pull back on intermediate time frames like the 5M.
However, after looking at the 30M and Daily, I felt there was room for one last leg up so I took the trend continuation trade. It took forever to work out but it did. I bought 53.17 and exited at 53.38 for a 2RR trade. Only 20 ticks but who cares. Grinding out 2 and 3RR trades out every day and adding size works magic in your account!!
Being done early on inventory day is pretty much the only way I think I should be trading it. History has proven my inventory trades are not profitable so its just better to hit the single early on and be done.
54.05 looks like the break out level for later today or perhaps tomorrow if it doesn't get it done today. If we close near there today, I might look for a runner tomorrow if the potential break out looks strong. If 53.55 (yesterday's high) holds and gets rejected, we might be looking at a down day tomorrow. Doesn't look like a lot of volume is there and somewhere the shorts might be willing to defend. However, all this macro stuff isn't necessary for my overall trading strategy, its just nice to indulge in once in a while. The 30M for context and Daily for overall trend is about all I use these higher times for.