live intraday trading e-mini futures based on orderflow (tapereading), volume and intermarket analysis
6/09/2016
how to put an entry in a consolidation according to volume
this is an example how to (not) put a trade within a tiny consolidation - i opened the first two contracts in the middle of the consolidation which is definitely wrong place, it was a mistake and not be repeated - as soon as i put the deal, the price moved downward to test the volume cluster where i opened other two contracts to move the average price slightly below. the truth is, that this was the level where the first set of two contracts should have have been opened, not the second one. the market can always test (or break) the low of the consolidation where the stop losses of buyers might be hidden, which, after all, happened right away - the market looked bellow the low to check the "stop loss liquidity", and obviously, found nothing interesting, and thus it is the signal to open another contract to move the average entry price even lower, with the target in the middle of the consolidation where the most volume, and most liquidity, is waiting to be tested next - that what exactly happened..
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