Video Transcript:
So, we’ll start right here on the daily again. We had essentially a doji—an indecisive day here at prior-day highs. After this bullish rally, the bulls are just taking a momentary breather, and we left these two highs, all-time high open. We did not reclaim 6,800, so there’s no strong bullish momentum to the upside today.
Let’s go to the chart that really tells it all — this one right here. Yesterday, we rallied into a bullish P-shaped profile. All the volume is up here, and we consolidated overnight within that range. So, what I was looking for this morning was some kind of dip down into here with a failed breakdown back to the upside.
Let’s see what took place today on the 10-minute chart. Now we can see things a little more clearly with a few more pieces. We’ve got our Asian session overnight, our London session, and our VWAP running through the middle. Off the open, price did a little pop up and then essentially sold off right down to these overnight lows around 6,763. It meandered a little bit and then came back through and reclaimed. Actually, I need to put this on a 10-minute — this is the 5-minute chart.
As we come down through here, let’s show this on the footprint. Initially, I was looking for a breakout that holds, a pullback that holds — a potential bull flag breakout off the open. That obviously didn’t go. Instead, we sold off and moved right down to that 6,763 level, which was the overnight low.
What did we get when we got there? We had some oscillation back and forth. We dipped lower, taking out that London low. And right here, we have a bullish block order of 600 contracts at a single price — 6,762. So just a point below the overnight low, somebody placed a big bet. You and I can’t put down 600 contracts — somebody did. You can see off the open there was bearish flow coming in, then less bearish flow, and then this flip right through here. That’s the flip.
So now what do we do? Do we immediately enter — throw all caution to the wind and jump in? No. We wait for the VWAP to recover. Here we got a recovery, a close through, then a pullback that didn’t hold. Dipped back down. Then we got another shot at a recovery — a close through, pullback, and this time it held. A buy stop goes in place and price moves up to the target at 6,785, which was the bullish break right here.
What you see here is accelerating delta coming back to the upside. You had a pullback, sellers came in trying to push it down, and buyers came right back through, popping it up. From 10:47 onward, price accelerated and ramped up pretty quickly. That was the only setup on the day.
Even in these tighter-range days, sometimes there are setups that can take place.
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’re looking forward to trading with you.
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