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Volumespreadanalysis

E-MINI S&P500'S SEARCH FOR VALUE15TH OF AUGUST – 1ST ENTRY (ES Futures Contract) I started to build my swing position by shorting the market at 4275.00. At the moment I’m risking 0.25%. I’m 25 points away from my entry targets. The reasons for an early entry are: 1. Overall weak Market Structure (last 2 month-rally). 2. Weak liquidity on 4 Consecutive Days. This is suggesting me that we might be experiencing a temporary bullish hype by weak hand traders. 3. Gradual build up of my trade. A market that trades against me and goes to 4300 and beyond will allow me to add more size and complete the trade, while improving my average price of entry. NOTES 4100 – 4150 = it is logical for the market to trade in brackets around a high-volume area, which in this case it was also the fairest price of the instrument (VPOC). The most important aspect of monitoring the VPOC (volume point of control) or fairest price level is the ability to visualise the potential change or no change in the fairest price level. On the 10th of August the market breaks away in an attempt to raise the perceived value of the S&P500. 11th of August – Perfect example of how the markets lie and trading what you see can be dangerous. The daily candle closed as a shooting star and trapped many traders into weak positions making them think it was a possible turning point. I was suspicious due to weak liquidity been put into the market and various volume anomalies. On the next day we have the shooting start violation and therefore a market confirming the fact that we didn’t have any real selling pressure that day, but rather a liquidation due to profit taking of weak hands traders. 4300 – 4365 = This is the area of potential entries. The value of the instrument is out of balance once again, the market can now be attracted to this area where we have significant low volume nodes. Low volume nodes represent past aggressive auctions (aggressive sellers here) which take the market out of fair value. They tend to be rebalanced by the market at some point, just like any other weak/inefficient area. At 4300 we also have obvious/weak highs. Any buying that took place above the fairest price level (VPOC) saw buyers buying price above the fairest price. When this is occurring traders are taking above-average risk , when I trade I like to constantly think in terms of odds. Any selling, relative to the fairest price level, would be considered selling short-in-the-hole or selling price below value. In other words, by going out of balance now (breaking away from the VPOC) we are testing the best short locations. This becomes particularly powerful when contextualised in a particular scenario (like this case) and compared with volume in relation to time and price, market structure and other relevant clues. For more explanations, please view my previous post, "A Dive Into My Swing Trading Approach (+setup)".
CME_MINI:ES1!Short
by LionLazzari
EURUSD BEAR OR BULL BREAK?Pair: EURUSD Timeframe: 4H Analysis: Round number level, trend line, volume profile, support and resistance, ascending wedge pattern ————— Key Takeaway: Need to see break of this ascending triangle to the down or up side depending on the US Core Inflation rate we see tomorrow ————— Level needed: Upside: 1.20845 downside: 1.01955 - 1.01848 ————— Trade: Neutral RISK:REWARD — SL: — TP: — ————— DO NOT ENTER OUR SETUPS WITHOUT CONFIRMATION
by TheGoldRoom
U - breakout soon?After hitting the low on 11 May, U traded in a sideway range between 32-48 for almost 3 months now, forming a possible base. The higher volume during this period suggest there could be some accumulation going on. However with earnings expected out tomorrow, there is a always risk of a nasty surprise. Hence to be conservative, wait for results to be out. Should the stock rise after earnings, buy near the break or wait for the first pullback. Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
NYSE:U
by Juliac
STEM - Adam & Eve breakup A strong breakup last Friday that propelled it above the 200 days moving average now. Any near term dip will be a lower risk opportunity to long (with stop loss just slightly below the neckline @ 12.30). Could face some resistances around 16.50 and if it managed to surpass this level eventually, than $19 - $20 is possible. p/s Biotech and pharma stocks have been breaking up lately! Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
NYSE:STEMLong
by Juliac
Short Natural Gas | Weekly ChartHello all, New week, new opportunities. This weeek we got some new trades, all of them shorts and all of them very interesting. Spacially, for Natural gas. As always, we follow up the the accelerate volume, this week the short volume crosses over the green volume and also in monthly chart the short volume is already greater than the long volume, so in the case the strategy is clear, short trade until long volume crosses over the red volume or until a key fibonacci supports. Have a good day
RUS:NG1!Short
by tradingconfibos
JICPT| NQ on the verge of breakout to the upsideHello everyone. It's been volatile for the past few days, especially after the higher-than-expected inflation came out last week. Investors were pretty concerned of the possible 1% rate hike. Two fed officials lowered the possibility that buyers came in again to try to take the control back. With a higher low and same high structure formed on the daily, I think market is getting momentum to the upside. The key level is likely to be penetrated through. I got my confirmation on the volume marked on the chart. It seems that after 34% drop from the peak created last November. Sellers need to take some rest. The key level is around 12900 where I expect huge selling pressure sits. What do you think? Give me a like if you're with me.
FX:NAS100Long
by JICPT