High Volume Day

Market Observations

Today started slow. But it did not last long. Two of the first three 5 minute candles had volume less than the average expected for their time period. The average expectation for volume can be seen in the chart by looking at the blue line. this threshold value changes for each 15 minute time period of the day. Note how only a handful of 5 minute candles had volume less than the expected average.

The initial light volume had me cautious to trade in front of today's 9:00 CT report. I had nice long signals and wished I realized the volume picked up so this I would have tried one of my two long entries. The market took off to the up side after the report and hardly looked back.

Formidable Resistance. Price quickly turned when it bumped into the combination of the R1 pivot and the Market Profile Point of Control from yesterday.

Big Selling. Our afternoon sell off started early today. I can say I'm going to start allowing myself to take more counter trend trades. I had a "perfect" sell signal at the first touch, the second time up to the high quickly retreated back down. Secondary sell signals were a "higher risk" trade signal, but worked great.

Almost did it again. Did you notice where the Midday low came in? Well look... The initial low touched 1513.00 and this is 2 ticks lower than twice the first hours range.

S3 calling. Twice the first hours range could not hold up the market in the afternoon. The S3 pivot level was beckoning. It was a struggle to get there. We pierced through this value and hit the 1508 level which I still had noted as a prior POC level of importance. The market popped slightly higher to close for the day.

Trade Wise, Trade Well

John