First, trying to collectively respond to a few PMs and previous posts. Simply do not have the time to dedicate to this Journal. Second, I would truly sympathize if the concepts and this way of trading is difficult to understand simply because it is difficult to articulate with "static" snap shots of the dome; you really have to watch this live and in action to be able to appreciate the whole concept. And yes, I am aware of the video recording option of a live session! Third, as I can see from the previous posts and how some of you are speculating as to what may seem to be happening on your domes, there is a huge difference between not knowing the answer and clearly not understanding the question. It appears that many do not seem to understand what it is that you need to look for - which, brings me back full circle to the issue of not being able to watch this live. Anyhow, some great stuff on the 6E and CL today, and I was able to take a few screen shots . . . .
QUIZ TIME! 736 lots on the bid smack at the LOD 13195! Answer this: Can you tell if the size is buying, i.e., initiating a long, or is the size covering; i.e. still considered a "buy", but actually covering a short? I have asked this many times before, and that's how you have to be able to distinguish between the two! It's OK, consult with your charts, indicators (RSI, MACD, MAs, Bollinger, etc.), but if you want to trade (scalp) this way - price action in its purest form - you have to be able to figure out the intent of the market very quickly.
A few minutes later . . . And the hint (since we are not watching it live) - the size was traded at 13195, and the market is 10 ticks lower! What happened? With that information, would you have gone long and took a 10 tick stop loss - a no no for a scalper? Would you have sold your 1 lot into the 736 on the bid and gone short? You see where I am going with this?
Personally I would have gone short into that, 700 is highly likely to be fake, if it got to it and it was real(started churning) I would have got out, but no doubt as soon as it got there, it would have pulled an made the new low, it's probably someones algo trying to fool other algos into buying so they can sell more, once required lot size is done, pull the bid and away it goes ..........bit like the AUD right now! :eek:
If you don't know what to look for, then you cannot expect to find it! There is a lot of maybes, personally, etc. You are up against algos that can send 1000s of orders in a second, so unless you know what the intent of the market is and can react with confidence and certainty, you have no chance if you want to trade this way! I would not expect anyone to understand this concept or have any slight agreement with anything that I say. There are millions of other ways to trade and to trade very profitably and successfully. But this is only way that I know how to and can scalp. Another great learning lesson in CL . . . .
Right after the open of the pit session . . . we have size showing up (which is what we look for as the clues) . . . 114 at 105 even bid . . . quick: Is he buying or covering? Where is the market coming off? HOD approaching LOD or bouncing off the LOD?
If you were watching it live with me, you would have seen the 105 was taken out easily. So no spoofing, and it wanted to get traded at that level - but was he covering or buying? Market is down another 13 ticks - wait - 203 lots smack at the new LOD 104.87 bid! What's going on? Another big buyer?
104.87 held, we bounced, but don't take the trade yet - don't be catching the bottom and trade the dead cat bounce - patience for another clue - aha - 101 lots at our good old 105 even bid! Get the clue?
Sweet! As soon as the market went bid at 105 with the size being taken out, this was your absolute bet the farm sure trade! Do you see why? Back to 104.87 with no size in sight! It's a free fall!