As the larger degree trend was up yesterday, most traders should have been focusing on long trades. BUT, and this is only for the Advanced Traders among you. There was a classic and perfect high volume (VSA) sell at DP resistance on the 3min YM at around 1:00pm EST.
This was a perfect example of how a market broke above old highs only to stop dead at our DP resistance and all on a high volume spike. A classic “fake out” by professional traders, and the sign for a sharp reversal.
The reason I say that this was for the Advanced Traders among you was because it was “against” a larger degree up trend, so you should have protected the trade quicker (using the 100% initial risk level). But this short trade declined past the initial support zone and found a low as the TS4 buy (next post) on the ES came in. The result, a nice +4R Profit (ignoring slippage and commission)
Thanks, Steve
This was a perfect example of how a market broke above old highs only to stop dead at our DP resistance and all on a high volume spike. A classic “fake out” by professional traders, and the sign for a sharp reversal.
The reason I say that this was for the Advanced Traders among you was because it was “against” a larger degree up trend, so you should have protected the trade quicker (using the 100% initial risk level). But this short trade declined past the initial support zone and found a low as the TS4 buy (next post) on the ES came in. The result, a nice +4R Profit (ignoring slippage and commission)
Thanks, Steve
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