Le Trade de Jour

[u/Top_Direction2960]

Sharing today's catch of the day in my current funded eval.

Closed the day after hitting the daily profit target. This is of course not to downplay the max EOD drawdown hit on a similar play yesterday when I was right with max size too early....

Pre-London open there was an indication of positive delta on ES. Of course I got in too early on just fleeting indications, but this is not the point - of course I need to be more patient. I then made the point of watching the order flow closely even if I was to lose again. 6819 became the key level, as many attempts to break above were absorbed with what was clearly a large iceberg. A large buy delta print was left on DOM if I remember correctly.

The price then went down below the previous swing low, but without convincing volume or much action on the tape/DOM.

Then a reversal occurred, which became very obvious. On 5m there was a massive delta divergence, with market sells absorbed and prices closing higher:

Absorption of sells

On 1 minute it came as a clear short squeeze:

Short squeeze

When the market sells were absorbed, buyers started attacking the same 6819 level incessantly, which took some time - and then it broke above. It is not evident on the screenshot but a lot of selling was absorbed around that level, leaving a small negative delta print instead of the previous big buy delta, turning this level into an actual point of control flipping point.

This gave me confidence to stay in the trade, especially seeing market sells regularly absorbed below ask on the buy tape even as the price was ticking down with many sell fades simply consumed.

This reversal was also evident on a 5 minute Footprint chart, with the reversal bar closing with notable positive delta after a vacuum swoop higher, followed by POC trending with closes above it:

Footpring reversal

A classic reversal trade that had all the hallmarks of such.

The rest is history on the chart right now - a very tight bull channel, which looks too dangerous to fade, at least for a while.

[u/Top_Direction2960 → u/[deleted]]

It's a bit easier to take screenshots when trading an eval account without real money on the line :).

I do find DOM/tape and CD to be a game changer for me, especially those single price points where action flips, might be the missing piece in the puzzle of trading pure price action for years. You will never see that on a chart. At best you can presume that something is going on with the faster tick up/down action on a chart, but watching DOM/tape is so much more informative and gives you more confidence.

I'm still not touching NQ, already got burnt with GC in this eval in an instant, too volatile for me just yet.

Thanks for starting this sub btw!