Once again today the price did not come back and test inside support. It has been the same thing almost everyday and I exploited it today.
The read was clear in the prep overlay. Either test inside support and have a higher probability for a downward correction or no test of inside support and grind up all day.
The cause of the type of action we had today gives an opportunistic trader an opportunity to fade what all the retail traders are doing.
This action is the result of retail trades fading the move up over and over again. When they enter short, stops are placed above the action which creates liquidity that the price is drawn to. Thus the shorting actually adds to the liquidity on the way up.
I was able to enter multiple longs on the TF even the the price was stretched. My trading style at the beginning of this year would have had me looking for inside support and then trying to fade or wait until a significant pull back on a day like today.
My trading has evolved more towards exploiting short term opportunities than hitting structured setups. The combination of a clear bias from no test of inside support and good feel about direction kept me out of trouble today.
There was one point where I was strongly considering a short at about Noon EST today when a clear bearish wedge had formed. I did not try to front run it and waited for confirmation.
Then, one simple 3 or 4 tick thrust up prior to the entry confirming made it clear that I was not even going to consider shorting this move up today. It was an example of old bad habits trying to manifest but feel and clarity taking over.
The other notable observation today was that again the TF had more than twice as much volatility as the ES. On the fast time frame I was trading, it looked like a freight train even though it was a steady grind up.
My feel and premise allowed me to see it for exactly what it was.
great trading - keep trading like this and you'll kick but
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