When is the last time you have seen two days in a row with no 5 minute bars with less than 10k volume? Not in my memory. ES will probably do 3 million contracts two days in a row also. Amazing stuff.
As the last few days of this section begin to wind down, I wanted to take a few moments and add a bit of a wrinkle to the "DOM Wall" portion of the syllabus. Sometimes, when watching the DOM wall, market participants move the wall location to a point (normally within 2 tics) close to the current bid / ask pair. This "moving of the wall" (as opposed to the complete disappearance of the wall) constitutes an effort on behalf of the smart money to fool the less experienced trader into thinking Price has begun to 'translate' out of congestion and into a new trend. We will see this phenomenon take place more accurately when we review the tic charts, but for now, make note (during your observations) the differences in Price action which result from a 'wall' disintegration vs. a wall 'movement' in an effort to 'see' what must come next. - Spydertrader
Is this the situation where you think the wall may have been breached (WTF!) but sure enough it bounces as you originally anticipated a beat or two later? With deep pockets, there's nothing to stop the bigger players placing a wall just out of range (as above) while whacking in large market orders on the smaller side, thereby getting in at the start of the new trend. The supply/demand balance is operating on two fronts at all times. I've noticed that you know when a major wall is down because the wall then appears on the other side as price translates. It shows up visually as a change in colour on my DOM bars, momentarily as all the unfilled orders sit there. I guess this is the origin of support becoming resistance and vice versa.
Spyder, Can you define ES bars 12:45 thru 12:55 for Friday the 27th. At first I viewed the 12:45 bar as an FTT of an up channel. Once the bar actually closed, the VDU volume lead me to believe it was a flaw (so continue to hold a long position). The following bar (12:50) had price lower with dec. red volume and looked like we were retracing to a yet to be determined "wider" up channel. Then the :55 bar had lower price on dec. black volume. Essentially I viewed the 12:45 bar (after its close) to be a flaw. If it was a flaw then in spite of the lower volume the :55 bar was the actual FTT. But that doesn't seem correct. If this is not correct, then the only other explanation seems to be the :40 bar was the real FTT. Crazy?
Not crazy at all. The 12:40 bar is an FTT - of an uptrending tape (not drawn in on my chart). Just prior to the timeframe you mention in your post, we see Price breaking out of two down channels (Red and Brown on my chart). This Price break out was preceded by an FTT of the down channels. Since FTT's form Point One's, we view the Price break out as Price travelling from Point One to point Two (within the uptrending tape). We then expect price to trend back down (moving from Point Two to Point Three) and forma Point Three Up channel. It appears as if you may be monitoring at too fine a resolution levels (Limbs, Leaves and Bugs instead of Forest and Trees). Take a step back (even push yourself away from the monitor if need be) and note the bigger picture. - Spydertrader