It has been a sloppy, narrow range morning in the S&Ps. After the high volatility of the past week, it can be hard to step on the brakes. I put on a trade this morning and it quickly showed a profit of 4 points on good range and volume. I thought it had more legs, so I brought my stop to break-even and played for a higher target. It reversed and stopped me out — typical for a sloppy day.
One of the things to look at during the day to help in this regard is the volume on the day. I like to look at the NYSE volume. Usually, if we are going to have a good, swinging day or trending conditions, volume will run higher than it has over the past several days. You can see on the chart that, so far, this is the lightest volume of the week (Click on chart for expanded version). It means that larger players aren’t active today. We need institutions, large traders, and the “Other Time Frame Player” (a Market Profile term signifying the large commercial and institutional traders) to move the market. We don’t have that today. Thus, it is range bound and we tend to see a lack of follow through in either direction.
Deep Practice
Tonight, we will have our third session of Deep Practice. We are using the principles of deliberate practice (the science of excellence used by all top performers across all fields and disciplines) to help traders develop their knowledge, skills and abilities with a direct aim on trading excellence. We have been getting very good comments about the weekly sessions (we meet each Thursday night). Lately, we have been looking at trend days to the downside, which has been very helpful over the past week!
It’s definately not too late to join. You can learn more about Deep Practice here: Deep Practice. I look forward to seeing you in the sessions!
Leave a Reply