Morning Sell-Off Ends with a Spring

Today was an interesting trading day.  The market sold down from the overnight high. Although selling was dominant during the early part of the US session, it wasn’t overwhelming enough to trigger a trend day down.  The Weis Wave told us that.

So when the market reached yesterday’s low and failed to bring in supply, a Spring was initiated.  Thrust in the price bars shortened and the wave volume failed to expand to the downside.  Once price closed above yesterday’s low, a long trade was triggered.

We had the best demand on the day show on the rally off the Spring.  This told us in advance to look for higher prices.  A Test of the Spring gave a follow-on entry.

One novice trader I talked to tonight was upset he missed the morning down move. Another also missed the down move but made 11 points on the day off the Spring and its Test.  The later trader understood that trading against the edges is the best place to trade. The novice still has much to learn … and he will.

Reading the Market Bar-By-Bar

Interested in learning to read the market by its own actions?  This requires that you understand how to read the price bars and volume.  This is the pri­mary lan­guage of the mar­kets.  On January 22nd and 25th, we will spend two full ses­sions on this impor­tant topic. If you have been strug­gling with indi­ca­tors or have always wanted to be able to look at a chart and read it by its own actions, you might con­sider this webi­nar. Designed for both experienced and newer traders, the ses­sions will teach you the fun­da­men­tals used by suc­cess­ful traders.  Detailed infor­ma­tion and reg­is­tra­tion can be found here: Learn the Pri­mary Lan­guage of the Markets