Video Transcript:
We have a bullish outside day. It looks like it closed above here at the bell. It doesn’t look like it’s going to hold during the settlement period, as we’ve got a pullback taking place here during settlement, which is kind of to be expected. So, let’s go through the day. We had our overnight range, which was fairly consolidated after yesterday’s bullish run up. The overnight session kicked off the week with a cash session retrace to the downside. Going into the overnight, we had a nice, fairly tight consolidation, and then we essentially grinded for the bulk of the day. Around 1:00, we started to get a bullish surge to pop through here.
That bullish outside day took out the prior day’s low and the prior day’s high, with the bullish close at the bell just above that prior day’s high. We are now retracing. We cleared the weekly value area high and held this zone right here. Heading into the day, we were already watching this zone, and you can see we bounced it numerous times throughout the day—one, two, three times during the cash session on the hourly. A couple of decent trades set up through there, which I’ll show you in just a second.
This was the first trade of the day. You can see we had the open right here, and for the first hour and a half or so, we just chopped. Finally, price came down, and we broke down really hard right through here. On this candle itself, the low point was -132, with a negative low point of 9923 and -646. So we had escalating sellers ripping through this price zone. We broke down 6700, with that prior week’s POC right here. Price came down hard, this candle opened up heavy red, and we broke down to the tick, nailed this level, and trapped some retail sellers. You can see that little red dot—that’s retail sellers getting trapped. Then we recovered 6700 on a triple-stack buy imbalance: one, two, three. You can see the countermeasures coming in here, with buyers starting to initiate.
The next candle opened, we plunged down, tagged in, and on the way up I took partials at VWAP, then exited the position at this swing high. I probably should have held to here, but it is what it is. Don’t care. The next bounce didn’t really set up well for me. I didn’t have any trapped sellers on that one to take advantage of, so I passed even though it ended up working. If you took it, great.
Here was another solid one. You could see sellers coming in hot and heavy. Normally, you don’t see this much action in a tight-ranging day, but when you pinpoint a zone between two key levels that’s fairly tight and being respected, you get numerous opportunities. We came down hard, with readings like -1256, 2121, 123, 1052 negative. This was a delta doji right at this price zone. The 12:45 candle came down again to the tick, recovered, and then shot to the upside. This was the one that launched us into the stratosphere. If you held it for the balance of the day, you made out well. You can see more buyers pouring in on the breakout here, here, and here.
Hey everyone, it’s Dale here. I hope you enjoyed the video. If you’d like to trade alongside me and our team of prop firm-funded traders every day, click the link below the video and hop aboard. We look forward to trading with you.
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