Wednesday, May 19, 2010

19.05 daily recap


- afternoon session: was pretty easy, value shifting higher, safest entries were longs around VA's lows, and we can see how price found S bounced to R, pulled back break above R, was really just a game of S turned into R. The order flow was growing, supporting the longs
- we can see how the OR high held as a strong R for the day. Interesting how price rotated from OR high down to dVAL and back up to dVAH from dVAL
- final shape of the profile looks like a balanced one (some theory: we should get a take off from POC or VPOC)


- open with gap down, price filled the gap quick setting the IBH and than start selling of and moving in the direction of the gap, down

- morning session:
  1. open was below value and range, in theory, one of the best trade location in this case is short yesterday's VAL
  2. second entry could be short at OR high, we can see the 2 full selling candles trending down, confirmation from selling order flow & value in B started to shift lower
  3. we can see how price slides to OR low, linger there for few minutes and break below, which could be another entry, late but safe
  4. B shifted lower than A & closed in the middle of VA; C was inside B, long from VAL of B with exit at mid IB. We can see how price consolidate around mid IB and a divergence on the order flow should be a good signal for exit
  5. usual consolidation, at dVPOC, in the end of C (closed inside VA, was inside of B) and start of D (open inside C's value and we were trading below mid IB, with decreasing order flow); if short not taken around #4, this could be a good entry. See how price was trading around IBL and break below in E. If you want to keep it for a further break of the IB: price closed below value of D, and we had a break of value in E, but better to exit at rectangle, we can see order flow picking up and E closed to the highs.

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