Mar 232018
 

This was a short entry range stalked by one of our long time members Fatfish, which he mentioned in chat and we discussed in the room yesterday. I wanted to be sure and use it for Thursday’s intraday swinging educational example not only because I happened to concur with his choice on all fronts, but also because I think it’s an especially good visual example for newer members trying to improve implementation of the so called ‘Trifecta’ concept employed by many DTG members. The idea being to start with pre-identified edges of key market structures likely to attract interest from buyers and sellers in a relatively tight range to stalk entry, followed by looking for failures (or lack of ) as identified by the pushes and pulls of price action, and finally looking for a ‘lot’ or a ‘little’ relative print volume identifying absorption and response and/or exhaustion of prior aggressors on one side or the other. As I said, I think this particular section of the action makes it very easy to see what these concepts look like manifested in chart form, so it might be a great spot to study in replay for those who haven’t been around long enough to digest hundreds of these…

So here we see the pullback in pink back into the (hopefully) very obvious former key S turned potential R from under 97’s from 3/19. Any question as to whether the market was keenly aware of that price? Yeah, I’m being facetious. Hopefully, the volume metrics there jump right off the page at you. BIG buyer absorption and seller response right on the bubble there followed by a waning interest from bulls into highs just above the case price. Also note that in that entire big single push up, the largest traders ended up net sellers against net buyer retail in the aggregate. This was followed by a classic second push high failure in light red, hard rejecting highs due to eventual buyer exhaustion/disinterest. Again, note the stats below which show net seller aggression across the board into that second attempt back up. For those who still wanted more bearish evidence to consider fading there we got a third push in dark red with a steeper failure, continued hard rejection of highs, and continued net short aggression across the board in the stats. Absolutely textbook stuff there for many countertrend DTG swingers stalking this area at the time…

 

Obviously I couldn’t fit the eventual move into what was then the next key swing structure below on this image. But if you make the effort to skip ahead you will see we eventually moved down to and retested the Globex low area which was based on the former IS line from the 3/6 Globex session 86.25. Plenty of action there to scale or flatten into depending on what your risk/reward overlay was/is. Originally I thought Fish might have been looking to hold multiple scales past the 86’s and on to the next structures below which were the 77-78’s followed by the 68-69’s from 3/5. Now that would have been a quite a score indeed for an intraday trader spanning 20 handles or more overall! As it turned out though, Fish’s idea was to stalk flattening an initial short from the 97’s area just above the 86’s structure and then re-sell a pullback to the 77-78’s from under looking to trade those into the 68-69’s as a separate position. Nothing wrong with that to say the least. Again, a great job reading the structures, price action and print flow and fitting those reads into his overlaid risk model and trade management context considerations. We are all rooting for you and impressed with the strides you’ve made Fish!

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Discovery Trading Group is a unique dojo focused on mentoring aspiring futures traders since 2010. It’s emphasis is on guidance in building bespoke processes and risk overlays rooted in market structure, price action and orderflow, with sound adaptable risk & bankroll management as a priority.

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