Today we opened lower by 5pts after testing the 1270 area in the Globex session, Strength Returned at the 1250 price and it appears that some accumulation has taken place in this region. We had a double bottom on high volume basically trading in a range all morning.
Daily Recap and Trades video here Skip to 5:20 to See My Daily Trades
Recap Notes:
Trade Selection and Judgment- good trade selection early but I could have managed some positions alote better. I made the cardinal sin of moving a stop up on a profitable position and getting taken out just prior to the rally. The Premise was still intact.
2 Sequences entered during the 90 minute grind
INTANGIBLE OBSERVATIONS:
When entering Liquid sequences, note typical cues the trade is moving in favor prior to scaling in further. Price should move in favor fairly quickly without hesitation. ie price rejection at the entry price or very near it.
**Note** Wall Street Gang pg 241 para 3 The Specialist decision to avoid accumulation at key prices (round numbers) can mean only 1 thing. He is going Higher/lower - What this means is that one needs to observe how the specialist reacts around key price areas of High/Low volume and/or S/R round numbers. Gapping thru round numbers is often an indication that prices may head to the next round number prior to further reaction by the specialist. He uses gaps to avoid limit order and public involvement in his intended direction.
Be aware of Cycle Support and Resistance that syncs with Round numbers. These are great reaction points for Liquid Fades.