Today presented an interesting opportunity day trading the CL using volume analysis. All indications were long early but the market retraced shortly after the open. If you still believed in the buy (I did) then where do you buy? There was a definitive buy line on my charts at 97.49 and an auction point was established there as OTF (other time frame) buyers held the initial balance low throughout the day. In fact, there were 4 opportunities to get long throughout the day. I was long on the first and added to my position on the second and held to the close. A good practice is to examine other days where this scenario has played out – what happened on those days? That can be a good indication of what could happen today and that kind of comparison to other similarly formed day’s volume analysis led to the recommendation in the room that you hold your longs for the initial balance high as a first target and then higher. Here are some progressive slides of the day with entries and recommendations annotated.
Here was our recommendation at 10:38 EST / 9:38 CST – buy and hold for end of day:[9:38:38 AM] Val Trader: otf buyer s coming in i’m long
[9:40:11 AM] Val Trader: GOING TO HOLD FOR HIGHS
[9:40:16 AM] Val Trader: oops didn’t mean to yell
[9:40:54 AM] Val Trader: vwap pvp set up for short though
[9:45:05 AM] Val Trader: key to this trade is in the next 16 minute close above initial balance low
[9:49:00 AM] Val Trader: going to test us
[9:53:29 AM] Val Trader: going to take some off at 75
[9:54:28 AM] Val Trader: anybody get long?
[9:54:35 AM] brad : you know it
[9:55:11 AM] brad : took some off at .77, runner for .95s
[9:55:30 AM] Val Trader: hold something please for end of day