PPI was released this morning at 5:30 am. We are opening well above the spike that was left from yesterday in M period. A sudden change in perception of value pushed price much higher in overnight trading. We are opening with a gap to the upside, out of range and out of value. There was a 30 point jump at 5:30 exactly. The gap from last night was closed at 6:49 am, we are trading in the direction of the gap close, to lower prices. The IB is very small with 23.75 points, price keeps circling through OPEN at 4026.75. A trend day to the downside is very likely. There has been no range extension to either side yet. Any gap is a change in the perception of value.
At the end of the day settlement is higher at 3999.50. Value is overlapping to higher compared to yesterday. The day’s range was 78.75 points. Today’s POC is 4017.75, exactly where we had a weak high yesterday in H,I and J period.
TPO chart:
First impressions, no trades, mostly sideways action:
First two trades:
The day, in summary, with a few trade ideas, trendlines and footprint charts.
My two trades, besides one mistake trade before the open where I forgot to switch to my practice account. In both trades I was impatient again and did not wait for the trade to play, made only a little money. Entry points were far enough above the POC, direction to the downside was obvious. Trendline above acted as a resistance. The second trade was a bounce after the 9:00 am 30 min candle just started, that was more luck than skill. In both shorts, I should have held on to my initial setup and not moved my stop loss. Wait at least 10 min before moving stop loss next time (unless it is absolutely obvious I have a looser.)
The footprint chart shows no sell clues, only price is moving up, should have waited to let it move in my favor and reloaded instead of closing out my short. I went in at 8:33 and exited at 8:40
My entry here was timed well, exit was premature again was no clear signs that there is a buyer in ther market driving price up. Entry was at 9:00 and exit at 9:06. Price did move against me, but I had a strong imbalance at 9:01 in my favor.
Yesterday’s low and the overnight low would have been good entry points as they were the low of the day. Footprint chart delivered some hints here. Buyers in the form of stacked imbalances were waiting just below those levels (blue horizontal lines). Note also how the last candle before we had stacked imbalances on the sell side. Delta is also indicating a change in direction.
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