As we do each week in Deep Practice, we reviewed the current S&P charts to see what the market has been doing and what it is likely to do next.
Starting with the weekly chart, we noted that the weekly as it looked on Thursday night (as shown here) appeared poised to close down below the close of last week. Given the heavy downside volume seen on Wednesday (A) on daily chart and Thursday’s relatively high volume inside day (B), we noted it was likely that we would see further downside progress today (Friday) and potentially into next week. We discussed a game plan for Friday to trade the market short.
Traders in the Asia and European time zones would see several Wyckoff principles lining up on the intraday chart to both confirm what was seen on the higher time frames in Deep Practice and to trigger trades: the Shortening Of the Thrust in the intraday waves, Effort vs. Result to the upside, lengthening of the down waves, UpThrust, a weak low-volume rally, etc.
Later, near the US open, sellers were clearly in control and a weak rally attempt into yesterday’s low offered a great short for those of us who tend to sleep when the traders from Asia and Europe are active.
Reading the chart carefully, having a game plan ahead of time, and identifying prime trade opportunities are skills that can definitely be developed. We do it each week in Deep Practice, a skills-based program based on 30+ years of research on expertise and excellence applied to trading. Every Thursday, we meet for a 90-minute session and assess a market via multiple time frames. From this analysis, we talk through a game plan on how to trade the expected next move in that market. We then shift to a lower time frame chart and walk it forward identifying choice spots to enter and exit trades. This is a structured way to build knowledge, skills and abilities in trading. We work on swing trading skills as well as day trading skills across equities and futures markets, including currencies futures. There are everyone from large fund managers to novice traders in the group, and everyone learns. Cost is purposefully kept low and you will get immediate access to videos of the last four sessions as a sign-on bonus. Want to really learn how to read the charts by their own actions? Come join us by clicking on this link: More Info on Deep Practice
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