Aug 132010

The market gave us a gift this morning.  It does not get much easier than this.  After the open, the ES moved into our80.75 / 81.75 area and made a double top creating a good short opportunity.  The VWAP or 79.50 from the sheet could have been used for a target.  Good way to end the week.  Have a great weekend!

 Posted by at 10:59 am

  3 Responses to “8/13/2010 Post Trading Analysis”

  1. This one I really don’t understand the level. It is right smack in the middle of the prior days value area. I see a tiny, tiny little fattening of the volume profile for the overnight session, but we are talking a couple thousands contracts at most. That hardly seems enough to warrant a trade at a spot in the middle of value that is by definition a 50/50 proposition.

    I don’t mean to sound critical so please don’t take offense. I am more confused than anything. How did you determine that was a level?

    And again, thanks for the blog, always gets me thinking 🙂

  2. That level was what I wrote about in the member forum a week or two ago about sometimes using HVNs as part of the level range. The area was not clear cut and based on my read of the pre-market structure, thus was commented as ‘tricky’. Also, it was labeled as a ‘Scalp/Fade’ area which means we expect the area to hold for a few ticks but it could turn into a full trade.

    • ok, great, thx for the detailed answer. I hadn’t noticed the “scalp” connotation on that level. That makes a lot of sense.

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