After an underwhelming performance by the sellers, the buyers demonstrated strength by closing above today's (and yesterday's) value area. My immediate focus is on whether buyers can sustain above it.
I failed to mention the VIX, which underwent a testing phase of its resistance level at 13.88 (with a high of day at 13.98) during the overnight consolidation. However, it was unable to break through decisively. Subsequently, a crush occurred, giving sellers a hard time.
Hey Smash, how do you approach entering trades once a level has been tested but not re-tested? I'm thinking specifically of the pullback during C-period today after putting in exhaustion prints below 4396 at the open. I remember you mentioning that one approach is to only trade around the levels one is observing. I try to stick to that but on days like today, where there isn't a clear entry, I take zero trades. If my stop is say, 3 points, entering at the pull back puts the stop basically at the level that could be re-tested. Any tips you could give would be greatly appreciated. Thanks again! (I hit you up on Twitter as well)
When initiating trades without relying on predefined levels, the ability to interpret the order flow becomes even more crucial. In such cases, I usually attempt to rely on other intraday references. For instance, the C-period retested the opening level, which potentially could serve as a trade location if one was confident that the A-period excess would hold. When the stop loss is set tighter, it places increased importance on the trade location. In such situations, there is no shame in adopting a defensive approach and exercising patience. Of course, reducing position size and widening stops provides more flexibility to maneuver.
I failed to mention the VIX, which underwent a testing phase of its resistance level at 13.88 (with a high of day at 13.98) during the overnight consolidation. However, it was unable to break through decisively. Subsequently, a crush occurred, giving sellers a hard time.
Thank you as always!
Market still managed to setup a sell trap in such a narrow range lol
@smash...if you’re ever hiring...I’d like to be the first applicant.
Thanks smashelito - have a great Friday flow and a nice weekend 🎰💥🧠
Stellar per usual! Smashelito for President!
Hey Smash, how do you approach entering trades once a level has been tested but not re-tested? I'm thinking specifically of the pullback during C-period today after putting in exhaustion prints below 4396 at the open. I remember you mentioning that one approach is to only trade around the levels one is observing. I try to stick to that but on days like today, where there isn't a clear entry, I take zero trades. If my stop is say, 3 points, entering at the pull back puts the stop basically at the level that could be re-tested. Any tips you could give would be greatly appreciated. Thanks again! (I hit you up on Twitter as well)
When initiating trades without relying on predefined levels, the ability to interpret the order flow becomes even more crucial. In such cases, I usually attempt to rely on other intraday references. For instance, the C-period retested the opening level, which potentially could serve as a trade location if one was confident that the A-period excess would hold. When the stop loss is set tighter, it places increased importance on the trade location. In such situations, there is no shame in adopting a defensive approach and exercising patience. Of course, reducing position size and widening stops provides more flexibility to maneuver.
Thanks for the reply Smash, it's given me more to think about.
Bro there are two major orderflow reversals off no particular levels today. Did u see them?