Yesterday, the market made new 20-day highs on good intraday trading. Twenty minutes after the open today, the market dipped and tested yesterday afternoon’s low. Obvious support points like this are things I look for. The market likes to trade at these obvious points.
Since the market slowly sold off yesterday afternoon, the market had to go an test that area to determine the level of supply before going higher. So, dipping slighlty below yesterday afternoon’s low, the market found no fresh supply. Lower prices were rejected and the market springs off this support to rally up and make new highs again today.
An hour or so later, the market tests the move up off the spring. Again, it finds no supply and rallies higher. This was an excellent entry had the spring been missed.
Springs are one of my favorite long-side trades. Today’s background conditions were ideal for a spring. If you want to learn all the details, nuances, and background conditions that make the spring such a high odds trade, follow this link: The Wyckoff Spring
On Thursday, February 10, we will begin our first Deep Practice session. We will be integrating multiple time frames and Wyckoff principles along with other high quality market knowdge in ways you are unlikely to ever have experienced before. I will be applying some of the key findings from the science of how experts become experts (known as deliberate practice) to help you develop excellence in your own trading knowledge, skills, and abilities. We have had a great response to this new program; many have already signed up. All the details may be found here: Deep Practice Starts This Week. Come join us on Thursday!
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