A very smart trader once said “I don’t care where the market is going tomorrow, I only care about today”.
I like the market trading in this area. Volume profile really nice when the market has traversed a few times in the same area. You only have to look back a few days/weeks and don’t need to template other days outside of range.
A lot of people are scratching their heads today. Bears got trapped, bulls got trapped, the FOMC was confusing.
Regardless of that, certain things happen over and over again and this happened again in the last 24 hours.
(This stuff is not basic. This stuff takes a lot of observation to get a feel for. It involves many different types of approaches to trading. Short term entries require a different set of tools. Also, if you are trading at the same time and focusing on the DOM, P/L, Squawk, Twitter etc then you may not be able to do that and learn this).
Anyway, to illustrate the basic concept I have a post from last week called “Distribution and failure to hold developing value / HVN”
After the last few FOMC meetings there was a bit of a rally and then a sell off. Sometimes it was straight away, another time there was a low volume squeeze after the minutes and sell off the next day.
An observation after the market closed last night which gave a plan:
Areas from earlier in the week held more than once: