<aside> <img src="/icons/reorder_gray.svg" alt="/icons/reorder_gray.svg" width="40px" /> Distorted NWOG. Volume Imbalance closure. 10 handle protocol. Running Down Equity. Symmetrical market. Psychology on HRLR. How to avoid pain in your journey. Lunch Hour Macro.
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We are likely to have a small range day, given the fact that we have CPI tomorrow. There won’t be a lot of excitement today so we just stick our Bread and Butter setups, meaning quick in and out of the market, grab your 5 handles and be done with it. Close the charts and go do something else. You don’t have to be married to the charts. There will be more impactful news later on this week.
💡 If you can frame a trade in both directions, 50-50 situation, then its not high probability environment and its better to wait on the sidelines. If you go in every trade with this mindset, you can avoid a lot of losses. Its important to be able to filter out low probability conditions.
💎 If you have a large move followed by consolidation, you can expect the high/low of the big move to be taken out.
💎Last Friday was a holiday (Good Friday), so the market closed early at around 9:14. That disrupts the normal NWOG scheme. Whenever we have that, we use the Friday’s Closing and Sunday’s opening like we normally do. This would originally be our NWOG. But because Friday didn’t close regularly, we are going to use an old NWOG (in the last 60 days),that is the closest to our original NWOG. If you don’t have one, then you don’t use it! If something happens on Sunday/Monday and we don’t have a full trading day, then we use Tuesday’s 9:30 opening price for our NWOG. Midnight opening price for Forex.
💎On Monday we don’t use the Asian range from Sunday. We use the one created on Friday, because the market will refer back to when we had a full trading day.
We don't have to worry about having the actual FVG highest high and lowest low for that larger range because we want to take ourselves into the core of what it's going to really reach for to rebalance to. That’s what we get when we refine on the LTF.
💎Until we get a body laid inside the Volume Imbalance, it will act as a magnet. But once it does that and then it leaves it, then we are satisfied and probably not going to refer back to it anymore. But as long as they don't drop a body across that range it'll always find a way to like go back and test it again multiple times. 💎 The Volume imbalance is closed when the body prints on the corresponding TF. If you have 5m VIB then you need 5m body.
This is less than 5 handles, so not much of interest.
Sometimes there's fluctuations that you're going to see in price action and you might be able to forecast how it's moving from one reference point to another. That doesn't necessarily mean that that's something that you should be trading.