A High Probability Trading Setup

[Soultrader]

One setup that I will always take is fading the value low/high pivots. Whenever you have the markets trading below value there is market imbalance. If the markets can not re-enter value, there is market acceptance below the value area in the new zone. Thus, both buyers and sellers agree that prices should remain in this new zone and I will look to fade any attempt to the value low pivot. Unless there is a shift in market sentiment, strong fundamental news, large institutional buying, we are less likely to see prices return back into value after trading below it during the entire morning session. In this chart not only did prices find resistance at the value low pivot, the RSI also peaked adding further confirmation.