Today we had a 15pt Gap Dn with heavy Globex momentum, price immediately sold off 10+ pts to test the VPoc from last week. and eventually testing below that @ 1401.50 area before bouncing then continuing the decline to the 1388 area
Recap Notes:
Trade Selection - Ok Trading, poor initial Entry, good exit. Sequence 1 was a Liquid Trade on the morning after a trend day. (was nullified by the large Gap below support) I was looking for a bounce of the Prior days POC. We bounced slightly and moved lower to the next Virgin poc where i was able to manage risk with size. However the heat was 5+pts. Volume was very heavy. I should have been trading with the Globex momentum!! for very easy 1S1k, particularly on a day after election and a very active globex session.
INTANGIBLE OBSERVATIONS:
Trust the Globex Momentum - today we gaped Down -15pt on heavy globex momentum
trusting this indication would have provided max profits in the shortest amount of time.
Exit into the rallies - Today i had multiple opportunities to exit into the ensuing rallies but failed to maximize profit due to my anticipation of higher prices. Price had already made new highs on 2 occasions all before the 1st Ti but shows signs of rejection, This was my missed opportunity.
Trust the Background - Always formulate a premise based on the higher time frame Background.
Trust your premise and look for test and confirmation in wholesale areas.