CL Trading day November 6 2017 PM

posted in: Market Recap 0

Frustrating day …

But good lesson to be learned.

Market Context at open :

  1. Day, month ( inside a balance ) and week up trend.
  2. Day breakout confirmation.
  3. Short term inventory long
  4. Overnight inventory long ( Pivot 55.96 )
  5. Gap opening
  6. Opening below overnight long inventory pivot.

We opened and traded up to the overnight inventory pivot. A sell entry could have been triggered here to go against overnight inventory as overnight long traders caught at top could be in trouble.

Market traded back down to fill the gap and I was expecting more overnight long liquidation specially because we left a poor low on “B” period low.

But market traded back up and I got out flat when the POC migrated up with the new high in “C” period high. This is where I made a mistake, I waited for a correction around the open and just above the intraday POC level.

Waiting for a specific level is trying to get the best possible price. The POC was migrating higher and value was developing higher a combinaison that put the odds very strongly on the long side.

Furthermore all time frames were showing up trending conditions and today was confirming the Friday’s 4-day balance breakout .

Waiting for a correction around the intraday POC level was making sense starting in “E” period because of the intraday POC prominency but the real good long opportunity came when intraday POC migration turned up in “C” and “D” periods.

I waited …and waited… and waited… missing this huge up move..

The only long opportunity was in “H” period when we rejected the breakout of “G” period low.

When markets are in strong trends entry with the trend are not easy to find. Patience is very important and managing your emotions of missing a big move !

 

Good trading !