<aside> <img src="/icons/reorder_gray.svg" alt="/icons/reorder_gray.svg" width="40px" /> Identify choppy/consolidating conditions after large moves. Possible models. Mitigation block + Inefficiency as DOL. “The Gospel” of price action. Trading Psychology. Learn to spot unfavourable conditions. EQL cancelling bullish bias. / 4 contract sauce
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We had a large range expansion overnight. That means that the AM session will be consolidating. Right now on the Daily Chart this is our Dealing Range. The range where the highs and lows are most salient, important.
If we look at the Regular Trading Hours we can see that we are in a very deep Discount. Really prominent difference between close and open. Repricing the Gap could be our Soft bias to return potentially to fill the Gap.
When we have large overnight moves like this we slow down because the AM session will be choppy, consolidating, Seek and Destroy. We can look for trades in the PM session.
💎Seek and Destroy is when STH/Ls are constantly taken out, then price will return to the middle. In the end of the day, there will be a big expansion move where it draws to liquidity that had not been tapped for a while.
On a day with large range expansion overnight is important not to go in and chase it because we already moved a lot.
90 handles is significant move. For 1 session.. in London. Try to avoid these conditions.
Mitigation Block is like a failed Breaker.
This level (FVG) is important because it it could act as resistance. Something that we would expect because underwater longs will sell at that level. The algorithm allows to the well educated traders to mitigate their losses.
Because of the large overnight move, people will be hesitant to long so it will be harder to rally. Its not impossible, just harder. We want to study the each individual PD arrays and where they lay on the map.
SM will have an opportunity to offset their longs. But if they are SM how do they lose? They are human too. They might have a bad day or not in shape.
We are just observing and not getting to excided, bc of the large overnight move, while the Retail trades will chase it lower.
When you choosing your FVG there must be a reason/narrative why that one. Not every random one will work.