Wholesale Price Reversal Bounces. (MATD, Globex Gap Cycle S/R, Round Numbers) On Liquid sequences we are taking advantage of WHOLESALE PRICE POINTS that are PRE-DEFINED!! they could be Round Numbers, Prior Day S/R from a Trend or Range, or Globex S/R or Gaps that are tested. These Sequences ARE NOT ENTERED WITH BAR BREAK CONFIRMATION, but rather $Tick, Block & 3Line Break Turns at or near the pre-defined wholesale S/R points. I use 1 lot to PROBE 1st. Bar Breaks are added confirmation and may be used to add-on to the current position. The Position is managed with Size within a predefined Range or Premise. The Best Times can be 2nd Time Interval of 90 Grind or Pre 9zone 9:00 - 11:00am.
At least 5 of the Defined Criteria Must be met prior to entry .
At least 5 of the Defined Criteria Must be met prior to entry .
- Defined Premise (A MUST)- Prior to entering we must have a basic premise of Strength or Weakness, We want to ask where is the most CURRENT wave of S/W likely to push prices. ie where is momentum headed. If the paramaters of the premise are Broken, then look to scale out of any positions and reassess the next wave of S/W.
- Pre-Defined S/R (A MUST) - WHOLESALE Price points must be defined and Marked on the chart prior to price testing this area. Look For Accumulation/Distribution signs with block bars and Exhuastion. Globex highs/Lows and previous days Lows/highs.
- Limit Orders Above/Below Market (A MUST) - Once we have a define price range We then Place LIMIT orders at or near those markers. If Not filled allow for only a few ticks to chase or let it go. This is where we use the $Tick to time the chase.
- Block Volume & Probars (A MUST) - We want to see Block Volume or Probars at or near these levels to confirm corroborating action from Professions.
- $Tick Turning at Extremes and Bouncing (A MUST) - To time our entry we want to see the $Tick reach key points, either at extremes +/- 1000 reading or Reacting to the 0 Line.
- Confirmation - I use the 3Line Break and Pro or Block Bar Breaks for confirmation that my entry is progressing with my premise. These are good add-on points.
Key Points to Remember - Start with 1 lot and When price is confirming get bigger, when price is not confirming stay small or get smaller if holding.
Liquid Trading - High Probability Sequences based on wholesale price levels usually defined by Support or Resistance. Liquid being short for liquidity. These trades provide liquidity to the market requiring adaptation and fluidity as is the characteristics of water.
Liquidity provider is defined as: Liquidity Providers guarantee transactions at the best price and boost the volume of transactions in the book. The Best prices are at extreme wholesale Hi/Lo's typically in the wrong direction for the opposing trader. Hence the best price for inventory with "little to No Demand"
Don't Use Set Stops on the prior swing lows/hi's!! Its ok to set stops after the turn (low, lower low, higher low= head shoulders type movement)
Coils are the old 2+ bar triangles that setup, look to add if this shows up in my direction, they are rare in the midday fade and on Tail days.
Midday Fades after 7zone have been good thus far. Don Considers this a good time for liquid trading.
Take 2pts in slower midday moves that have tighter ranges.
Air would be an observation of how far price has moved in extreme from say BB mid line or $Tick 0 Line. Use higher time frames 5 minute and 4500 ticks to determine air- ultimately this is the room price has to travel FROM an Extreme.
Probe trades have NO confirmation, just simply getting a feel for the rhythm.
Confirmation would be a Block Bar Break, 3 Line break, $Tick 0 line break, BB Mid Line break, coil or test in a rising market etc, at which point i may add a contact.
Trading Tails- keep orders below/above market at areas where price may Spike in case we get a Great wholesale opportunity, there is often NO confirmation.
Note the rhythm of the globex session, are tails being printed often?
If entered too early, UNDERSTAND that market Always Correct. Don't be too quick to panic and barf out.
Good to exit at 4500 BB mid line.
Never manage a trade based on average price when adding lots.
**Random thought**Fade Gaps on the higher time frame Resistance or New low Support, look for New Highs in globex to retested. See Ice Fades
Liquid Trading - High Probability Sequences based on wholesale price levels usually defined by Support or Resistance. Liquid being short for liquidity. These trades provide liquidity to the market requiring adaptation and fluidity as is the characteristics of water.
Liquidity provider is defined as: Liquidity Providers guarantee transactions at the best price and boost the volume of transactions in the book. The Best prices are at extreme wholesale Hi/Lo's typically in the wrong direction for the opposing trader. Hence the best price for inventory with "little to No Demand"
Don't Use Set Stops on the prior swing lows/hi's!! Its ok to set stops after the turn (low, lower low, higher low= head shoulders type movement)
Coils are the old 2+ bar triangles that setup, look to add if this shows up in my direction, they are rare in the midday fade and on Tail days.
Midday Fades after 7zone have been good thus far. Don Considers this a good time for liquid trading.
Take 2pts in slower midday moves that have tighter ranges.
Air would be an observation of how far price has moved in extreme from say BB mid line or $Tick 0 Line. Use higher time frames 5 minute and 4500 ticks to determine air- ultimately this is the room price has to travel FROM an Extreme.
Probe trades have NO confirmation, just simply getting a feel for the rhythm.
Confirmation would be a Block Bar Break, 3 Line break, $Tick 0 line break, BB Mid Line break, coil or test in a rising market etc, at which point i may add a contact.
Trading Tails- keep orders below/above market at areas where price may Spike in case we get a Great wholesale opportunity, there is often NO confirmation.
Note the rhythm of the globex session, are tails being printed often?
If entered too early, UNDERSTAND that market Always Correct. Don't be too quick to panic and barf out.
Good to exit at 4500 BB mid line.
Never manage a trade based on average price when adding lots.
**Random thought**Fade Gaps on the higher time frame Resistance or New low Support, look for New Highs in globex to retested. See Ice Fades
