- going into today, based on yesterday action and ON trading activity, i had an neutral to positive bias- the reasons why: we have closed in the upper distribution yesterday, we cleared a few levels below and we just built upon the balance area of the past 2 days; the ON high was above yesterday high.
- i knew that we don't have any catalyst for this trading day, so i was expecting low volume and range day building further the balance area.
- ON found S@1137.25, the same area the previous ON and yesterday RTH
- after the open, which was below the spike (see spike rules) in the middle of the balance area, my bias has changed into neutral to negative
- we can see clear a few divergences on the order flow and price which may have yield very nice profits if played correctly, by my plan. For some reasons I wasn't focused enough and didn't follow any rules or discipline outlined in my plan. I did all kind of mistakes, including over-trading, not noting my trades, etc and in the end I lost - 7.75 points.
- today trading results: -7.75 points
- in my premarket prep i said that i have to play the balance area scenarios (see balance area scenarios), based on the order flow.
- we can see the first opportunity presented itself after the IBL was set in stone, with price moving higher, order flow just found S, as well, and went to probe the IBH.
- second opportunity was a quick scalp to the upside when order flow sold but price didn't dropped too much, creating another divergence. After the RE was made this was just a normal reaction of RE continuation, but on low volume and without follow through
- the most profitable trade came from VAH, with very clear and huge divergence between price and order flow, price making new highs, but order flow struggling, responsive sellers were present in huge amounts at different levels (seen on the footprint chart)
- this is a very strong setup, used in context (balance day with high chance of just a range day); i have to focus more on days like this and to be more confident in my strategy, to find a way to effectively execute my range day trading strategy
- definitely, on days like today trades will be placed at the extremes of the range. If there is a catalyst i might consider placing trades from dVPOC or midIB. Scalps could be made from inside the structure, but scalps will be executed like scalps and not transformed in trades.
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