Registered: Feb 2009
06-08-09 09:16 AM
and before we sign off here is the same chart again and as can be seen we have tagged the 930 pivot. This trade (if one were on it) would have brought in about 5 ES points, and of course it may very well continue on down.
Notice a couple of things here. First, the high is up at 940 and the current touch of 930 is (yes you guessed it) about 10 points lower.
Secondly notice the reaction at 930 as buyers came into the market looking for a tradeable bottom. Is this a bottom, we don't know, but if you employed a scale out money management method you would have taken at least some profit at 5 points and you would have the luxury of being able to wait and see what happens.
There is one more item of information that may interest traders who use Market Profile in their trading decisions. Tonight my worksheet shows Previous Value Area High at 945 and the Previous Value Area Low at 937.50. If one were to re-visit the chart, you would quickly see that we had a confluence of the weekly pivot and the Value Area Low nearby at 937.50. For me anyway this would have been a high priority short entry (I did not take it as I was busy doing my homework).
Now my priority is to get some sleep before the RTH market opens.
I hope this helps and good night
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