Tutorial | How To Identify Potentially Strong Trend DaysI got smoked shorting the MNQ today. And it was avoidable.
The MNQ1! and the MES1! were flashing warning signs since the Sunday open to NOT fade the move. I stayed off the sell side for the opening 30 minute candle, but then got sucked in at a level. The entry was a violation of one of the Golden Rules of Range Trading - STAY AWAY from Outside Days!
In this video, I discuss how to identify Outside Days and look for Untested Prior Session POCs as signs that conditions are pointing to trending price action.
Outsideday
Tutorial | Lesson 4: Key Levels When Trading 24 Hour MarketsLet's look at some key levels to identify before each trading session, especially when trading around the clock markets like futures.
Before the cash session bell, what are the prices for the following levels?
Prior Session High/Low
Overnight High/Low
Developing Value Area High/Low
And then, at 8:30a ET, is price above or below the prior session high or low? Are we seeing an inside or outside day? Other levels worth consideration are prior sessions POC, High Volume Nodes (HVN) for possible areas of support or resistance, and price relative to our trend filter.
EURGBP - Sell at .8770 and .8788, Stop .8812. WednesdayDespite being bought higher initially Tuesday, a sequence of 3 up days ended. Fresh selling interest emerged above the 13/200 day mvg avg area with the resulting decline leading to the production of a Bearish Outside Day – a negative formation that point to a renewal of selling pressure. So this morning’s call is a Sell at .8770 but leaving room to also Sell at .8788, an intraday Marabuzo line. The risk is .8812, the 200 day mvg avg, with downside objectives at .8754, yesterday's low, .8727, Friday’s base, or even towards, but probably not as low as, .8687, last week's bottom.
