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Market Pullback And Rejection

 

A big topic among the traders I train is one virtue all traders need to have and that is patience. With the big violent moves and the increased volatility in the Crude Oil market the past week if your not patient, you are probably crying!

 

825x510x2015-02-06_photo-825x510.png.pagespeed.ic.eWnR-jDILd.jpg

 

Take a look at the header photo and look at the arrows representing the extreme and then the second attempt. It is imperative you identify both so you are able to jump on board those lower risk trades that usually go the distant.

 

 

Volume is key and like I say in the video you can use all the indicators you want or even price action. If the amount of buyer or sellers does not succeed the amount of prior sellers or buyers the market will not go. PERIOD!

 

Don’t forget you do have to take in consideration that nobody knows the next order in the market, which could have a direct influence on direction.

Edited by Speculator70

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In the live trading room after the CL open we picked off the IB mid which represented the bottom curve of the developing market profile – P looking for clear buying pressure and selling exhaustion. The arrows in the photo are showing the areas these opportunities taken.

 

812x458x2015-02-09_cl.png.pagespeed.ic.MHIO8IqFUS.png

 

Notice on the above chart that each time the market was coming down to the mid the buying volume was strong. 52.90 was a magical number and produced beautiful trades to the upside.

 

 

2015-02-09_es.png

 

Today the ES market gave us what we were looking for. We waited for the IB to print and we watched for the same action, looking for no more sellers at the IB low and was able to pick off the reversal at 11 am est. Clear support on the market profile chart. Basically that was the trade of the day in the ES so far.

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2015-02-11_photo.png

 

Today in the live trading room after the morning inventory report something rather special unfolded in front of our eyes. The weak sediment that the CL is going to fall from the sky is on the table and everyone is ready to sit down and eat.

 

Possible Spring – As the report published and the demand to sell was evident the market gave its initial push to the downside getting everyone set in pure enjoyment. But behold as the huge amount of supply hits the market, guess who steps in and buys it up to no end.

 

You can see the buying start on the report candle in the photo above. Suddenly all those joyous sellers are getting nervous and stops get heavy on the depth. So guess who sees that, that’s right! Your stop gets filled as another wave finally vacuums up the mess and clears the way.

 

Spring Confirmed – No all of a sudden the demand to go long is in full force but the supply is given out like nibbles of cheese. Guess who is controlling the market’s direction?

 

Test of Spring – Then finally the deliberate move creates one more false look to the down side for that one last faithful seller to jump on board. Again finally met with strong buying pressure and the market is ready to resume it’s real direction once it has enough players on the wrong side of the field.

 

Jump on board and ride!

 

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2015-02-13_photo.png

 

Markets will revisit price levels all day long and if you are not tuned into this behavior your missing out on some great opportunities.

 

In our live trading room today the as the market approached the price level between 52.70 and the IB Mid multiple times we witnessed the absorption of supply and demand return in control of the buyer setting up some beautiful trades.

 

It started right after open when the market made its first low and was resisted with a engulfing amount of buyers. We were able to capitalize on this behavior immediately for a favorable trade.

 

The second arrow is pointing to our price level area showing where the sellers have been over taken along with it testing pre-market price levels above as it was able to create an apex of consistently higher candle closes marking it territory where we should get ready for take-off.

 

Third arrow represents the next sellers attempt at lower prices. After the selling candles closed with pure buying pressure it was clear that we are diverging for a newer high and its time to take a position to the up side once again. Also look at the volume below and notice the selling volume at 10:50 am is diminished.

 

Fourth arrow and line of support is just a mirror of the same explanation as the third arrow area and its development.

 

At 1pm the market spiked up and held at the IB High -typical upthrust in the market as it was met with extreme selling intentionally taking out the position buyers. As it recovered off the IB Mid at 1:15pm notice how the market is attempting to regain as a buyers market. bThe problem is all the buyers have been flushed out (look at the volume below) and it showed immediate weakness. Therefore the beautiful trip to the downside was premeditated and created.

 

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2015-02-17_photo.png?resize=825%2C510

 

Today started with the continued behavior of the prior pre-market trading. Showing no interest on the buyers attempts. The supply kept flooding the market and down it went.

 

Right at the open the market showed a strong selling candle and the buying attempt again was met with rejection and a short trade was evident.

 

Once the IB low set for the morning we watched the supply get bought up and demand got great at 11 am making it the largest attempt of the day for the buyers market.

 

Each attempt by the sellers was met with less and less interest to the down side which is purely illustrated below in the volume. Making it very easy to pick off the lower reversals to the the upside

 

By looking at the arrows drawn on the chart above you are able to take notice of this chart behavior and remember it, as it happens on a daily basis. Even more than once, as you can see what happened at the IB High around 1:30 pm est.

 

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2015-02-19_photo.png?resize=825%2C510

 

You hear it from many traders “I Don’t Trade Rollover.” Well if your already a crude oil trader and you are tuned in and enjoy the volatility it can bring. Then rollover should be a day to capitalize. Its all in the day trading education you are learning and what effort you put into it.

 

Yes of course stay within the normal trading hours and don’t try to be a renegade. If what you've been taught and the methods you are using are up to the standard, trading the rollover period should actually warrant full embrace.

 

 

Look at the chart and watch the analysis video. Look at the moves and there pullbacks along with developing divergence and volume setting up the larger moves.

 

Today in our live trading room it was one great trade after the next, members reporting some of the best trading they have ever did. All because of a proper day trading education plan, execution and support.

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2015-02-23.png?resize=825%2C510

 

Today in our live trading room we were able to clearly see the developing areas of support and resistance, volume action and absorption which helped us take full advantage.

 

 

Look at the chart above and watch the analysis video as we show you how the potential areas turned into areas of execution. Our members in the live trading room not only are keen to the behaviors and structures but are executing at high gear.

 

If you follow this you would know as we talk about some of the topics such as volume, springs and support and resistance all the time. Volume is what drives and the market. Spring is a market behavior and structure and support and resistance become areas of interest and targets.

 

Today the initial balance told us the story that every time range extension was possible, the major players weren't interested allowing the fall back into the IB. Supply got real excited up above but the demand just not there.

 

On the flip side of the IB, the mid held for over 90% of the trading day which triggered those large operator moves from the middle.

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2015-02-27_photo.png?resize=825%2C510

 

When trading a market that could have swings and volatility such as Crude Oil you have to be prepared and have a good understanding that not every day is going to have large anticipated moves.

 

 

Looking at longer term charts especially Market Profile charts shows trading ranges with continued extension failure. Front part of the week looked like the large operators were selling into the low, allowing such a pull back into this range mid week.

 

When the supply was gone the demand was still there sending prices higher but again by Wednesday the demand itself was wearing off at the highs creating theses inside days with no real action – just absorption. Now once completed the downward move will probably continue.

 

In the live trading room today we discussed the behaviors and you should have a general idea what to expect for that day’s trading. Example would be coming off Monday & Tuesday trading to the last two day’s staying inside the IB with minimal moves.

 

If you enter these days with the mind frame of the beginning of the week you are probably licking your wounds.

 

Anticipate not Participate

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2015-03-02_photo.png?resize=825%2C510

 

Today in our live trading room the main focus was waiting for supply to noticeably over take demand at repeated price levels and look for the entrance to some great trades.

 

 

If you get a sudden move that is a game changer what does the market do once it attempts that price again? Train you eyes and your brain to understand that the market is a true auction process.

 

Where there is a buyer a seller is on the other side. Say the market is going up to its high such as in the picture and video above. Once the buyers over come the sellers and the sellers are no more, the market has to return downward and find interest.

 

Today in the live trading room we watched and took advantage of this behavior many times. Don’t forget when the market gets at these extensions, profit taking occurs. Profit taking gives the market once more push to the upside and to the non-experienced trader, it looks like an opportunity to get in the trade which they are late to show to anyway.

 

Therefore the upthrust is born trapping those buyers at the height of the market and then it closes on its low.

 

Pity to that buyer, should have been profit taking!

 

Chef

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2015-03-04_photo.png?resize=825%2C510

 

 

With the inventories paving the way for the breakdown and the big sell off.... wait didn't the market completely reverse the whole day?! Yes it did and we were sitting there waiting for it. Don't you love it when a plan comes together.

 

Are you still trading the on the notion that the TV news along with everyone else aka: the herd, misinformed or non-professional friends are giving you solid information? You must be doing incredible with your trading! Agree with me and you also probably mistake quarters for manhole covers.

 

Ok enough fun! Trade the chart people, put everything out of your mind and just try to understand what the market is telling you. Need Help! Get an educator, not a membership salesman to keep you on the right track.

 

In our live trading room today we pitched a no hitter based on strong hardcore evidence as the market unfolded.

 

After the market broke down today reflecting the outcome of the report it was able to establish a mean and the secret underlying buying began. You will see it in any volume indicator or market profile chart.

 

If you knew this information while in the absorption phase you would start to see rising lows and a sudden break to the upside. Everyone sitting there with sell tickets in hand just got there you know what handed to them.

 

If you are trading on the wrong side of the market and you want to stop the bleeding come check us out in our live trading room.

 

chef

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A strong part of our methodology taught is Market Profile Trading. Today using the developing profile and volume as our guide we were able to wait and execute at very favorable positions.

 

It wouldn’t hurt to understand at least what shape is developing for the day to identify areas of support and resistance and market direction. If you have a good understanding of Market Profile trading you can even see the developing shape through your time or tick chart you use to trade with.

 

Market Profile trading paired with a simple volume indicator can tell you at what point on your trading chart where prices are favorable and rejecting. Favorable areas on your charts or the price areas with the most traffic are usually shown with high volume. Rejecting areas of your charts are usually areas of low volume.

 

Pay close attention to these areas and the behavior of the market. The market will return to these levels and see if you notice a pattern which can have a direct affect to your trading decisions.

 

chef

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Today in our live trading room we were able to establish that the failed attempt right before the open gave an opportunity for shorts to be established right before the opening candle.

 

Also with the consecutive attempts at the pullbacks or scared shorts getting out of there positions to early led to other great trades on the short.

 

In our live trading room volume is very important to our trading and in the video above it shows how buyer and sellers and price levels will and eventually fizzle out leading the way for the upper hand.

 

If a position at a price level does a has a certain behavior and re-visits that price level again at a later time it is very important you pay attention at what is doing and is it going to repeat the same behavior. Such as being at support and resistance areas.

 

Use this larger picture and bring it to you current trading so you can capitalize on the right side of the market.

 

chef

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