Recap of My Trade Idea from Yesterdayβs LIT Market Talk
Hi everyone! Here is a short explanation of my trade proposal from yesterdayβs LIT Daytrading Market Talk. Yesterday, Robert had to leave early because he had a webinar in Bookmapβs Learning Center. He asked me spontaneously if I could share my screen. I actually donβt have a microphone set up on my trading desk, and normally I donβt trade on Mondays. Additionally, yesterdayβs trading day was quite difficult because we had a holiday last week, and on Friday the CME data feed collapsed. Under these circumstances, you have to be more careful than usual. In general, on Mondays the market also needs to find its direction. Anyway β¦ Here is a short breakdown of my technical analysis for those who may have watched my screen and followed my drawings, with some additional context: - The overall context was clear: be careful and wait to see what happens during the market opening at 3:30 PM (CET).The market opened below Fridayβs lows, which is a sign of strong bearish sentiment. - Additionally, I had marked a selling imbalance in the pre-session of the day and a high-volume node in the prior weekβs volume profile (30-minute timeframe). - The market opened very bullish. I waited to see how market participants would react after the news release at 4:00 PM (CET). - When the market pushed into the selling imbalance, I switched to a smaller timeframe (3-minute) to see whether aggressive sellers would enter the market again in that price area. After the first white candle (in my chart; normally this would be a red candle) with a rejection wick to the downside, I would have entered the trade with a stop loss above the top of the move. - My first target was the session VWAP, with the idea that the market might retest the pre-session value area and the volume point of control before higher prices would be accepted. Everyone who followed my analysis saw live that the idea finally played out. This is my explanation in advance since I didnβt have a microphone to comment on the trade live π