MATD Morning After Trend This Sequence is based on Don Millers MATD trade along with my own observations of Globex and Pre-open Bounce near the open.
The idea is to Fade the S/R area after a Trend Day to take advantage of Wholesales prices and Traders needs to React at theses areas.
These Days Bring stuck Traders that NEED to take action (If Support, these Traders Bought at the highs and are Now under serious Pressure and will panic out at these lows by Short Covering which will strengthen our position. Vis versa for Resistance) Other Traders that Missed the trend altogether and are Now Upset and will rush in at these Support Levels which will further Strengthen My position. Best on Mornings After Trend Day.
- I.D. Longer Trend 13,500, 4500, 135 minute ( MUST) - We want to trade in the direction of the Longer term trend. Draw Trend Lines if needed
- I.D. Prior Days, Globex, Pre-Open S&R - We want to Draw S/R line on the 13,500 and 4500 and note any Tick confluence cycle's around these areas. This is the Background.
- Probars or Block Volume Reacting at these levels ( MUST) - We want to see Professional activity reacting at these levels. On Retest(Double Tops/Bottoms) of Globex S/R we May Get No Supply or No Demand at these level. The rules remain the same.
- Take the 1st Tick Bounce off Extremes ( MUST) - When Tick begans to turn at the first Low Extreme you should have position on. On 2nd or 3rd Bounces look for $TICK Divergence for great confirmation.
- Entering with Bids or Offers above and Below Market ( MUST) - We want to place Buy/Sell orders above/below market - No need for probar breaks prior to entry - We Want to catch the price closest to S/R as possible as price stalls and turns. If we are not filled when the $TICK turns then forget the trade. DONT Chase the market.
- Exiting Into The Market - Price should bounce into favor fairly quickly. Allow time for price to move in favor. Im looking for the market to take me out of the trade. Read the tape and when Price starts pausing and stalling while in profit drag limit to exit. Give it at least 5 minutes. **Note** When Longs are not getting Filled that is a Strong Sign of Weakness. When Shorts are Not getting Filled that is strong sign of Strength. Best to Close All or readjust limits and Reassess the premise
- Money Mangement.Use a 2pt stop on the trade with max 2 lots not wider than 1pts apart. ie If i enter the 1st trade at the 1200, then the 2nd entry should be 1199 or 1201 Risking max 2 pts each for a 4 point total Risk, the same as a single lot entry with 4pt stop.
Open Ice Breaker Fade:
look to Fade the Hi and Lows instead of breakouts WHEN the Pre-Open has High Volume at tops/bottoms that NEED TO BE TESTED before continuing. The 2 minute and 1500 tick shows a closer look at the volume activity at this time also. These may be more likely to occur after a LARGE GAP above 8+pts (see more)
- 1 Market Bias Signal RANGE.
- 2 Pre Open Highs that have NOT been tested. May be at Cycle S/R, Pivots or Globex POC. Also Blocks at highs and lows and True Rambos at highs and lows confirm direction.
- 3 Finally we look for the 13,500 Opening bar to print.
- 4 Wait for Price to test the Hi/Lo, many times it rejects quickly.
- Enter Fade in Opposite direction of Strength/Weakness
Blocks at pre-open highs, price retesting the area on the open.
13,500 and 1500 look at an Ice Fade.
Another Example of Ice Breaker Fade
Ice Fade Characteristics - This is MATD variant, we are taking into account the fact that Weakness/Strength was in play on the PRE-OPEN. So the results would likely happen on the open.
- The Pre Open had Blocks and high volume leading into the Top.
- The Top was the Actual High, Needing to break New ground for any profit.
- There was NoD on the 4500, 1500 TOPS and No Pro bars on the Actual Open.
- $TICK printed Exhaustion after Consecutive tight range bars leading to the peak.
Tick View of the Ice Fade, Notice the prior days Close showed strength that played out in the after market moving to NEW highs peaking on the Actual Open.
