CL Trading day November 2 2017 PM

posted in: Market Recap 0

Low opportunity quiet market …

 

The market today was quiet, characterized by low volume, no interest and balancing.

We opened inside yesterday’s range and value and traded inside a 32 ticks range from “A” period to “I” period.

Market Context :

  1. 3- Day Balance ( 55.09 – 53.81 ).
  2. Poor Low from 10/30
  3. Overnight inventory short.
  4. Yesterday’s short term inventory short.
  5. Opening inside Yesterday’s range.

Even in this market condition I had a good trading day. Here’s why :

When we open inside the previous day range ( closer to the center , the better ), patience is required.

The open showed also a lack of conviction ( traded multiple times across ) which was also leaning toward patience. Expectation was chop-chop trading early.

I started leaning toward the long side in “E” period. Why ?

Because of the POC migration which started moving higher and against overnight and yesterday’s short term inventory. I established my main position around the POC level and bought multiple times a second contract below POC taking small profits on this added contract and keeping my main position long at the POC level around the 54.30 level.

When the POC migration goes against weak hands inventory it increases the odds in favor of the migration side for a possible inventory covering situation. This obviously all depends on the current market context.

 

Good Trading !