Emini Trading Recap – Thursday 7 Nov 2013 (22:44)
Extraordinary couple of days on the Emini. I traded Thursday but took Friday off as it was Mrs. Emini-Watch’s birthday. Frankly, I thought Friday would be quiet after Thursday – but noooooo.
This video responds to 2 questions I got about the last couple of day’s trading. One on Exhaustion Volume, the other on Buy Signals. Apologies for it being a little on the long side.
Question on Exhaustion Volume …
“Hi Barry, Great day. Boy, when there’s lots of volume, your indicators are simply amazing.
Would love it if you could address this in a future video of yours. I know you often say that professionals get short before peaks and long before bottoms. However, what I don’t understand is how the price often accelerates as they’re doing this. For example, as the price is reaching a peak, the price rises quickly during the blow off move as the professional bars are coming in. It seems the professionals are able to push the market up and simultaneously getting short. Are these professionals actually buying and immediately selling at the same time and that creates the acceleration effect? Would love if you could shed some light on it just so I can understand this behavior in more detail.
Thanks again for your indicators and videos. Sean”
I associate the acceleration effect Sean refers to as being more driven by Amateur activity and stops being run, than Professionals. The Professionals tend to be “lying in wait” and are happy to see price come to them. You also might like to watch this video on Running Stops and Where to Place your Profit Targets.
Question on Buy Signals …
“Hi Barry, I really bit it today. Can you advise me as to what I am doing wrong. Am I missing something. Should I be looking at something before I make a trade. I seriously need to make this work.
At 08:51 November 7, there was exhaustion selling on the price bars (15,000 contracts), 3 professional bars at the lows, and cyclical support (sine wave exactly crossing). All 3 of your indicators giving buy signals at the same time. I went long and the market kept going lower the whole day while buy signals kept on appearing.
Please help, David”
Be very slow to take reversal trades. The market will test and test before confirming a Support level and reversing into an uptrend. I hope in the video I show that there were not enough confirmation of a buy signal. And in fact the Professional bars showed they were falling through the ice and breaking into a downtrend on the 4,500 tick chart.
Good luck with your Emini trading.