Friday, September 5, 2008

Buying a high for a higher high

I missed the long trade at VWAP as I was buying some stocks for investment ;-).
I dont personally like this trade but serves as a great example for tape entry.
Its all based on the orderflow.
Price fails to make a reversal. Every attempt to sell has been halted by resting bids.
Finally there is a big order to sell (3K)(11:41 bar with chart filtered @ 100 contracts above) that gets absorbed and more important an initiative lifting the offer of 1.5 K and 1K orders (see tape on top). A combination of events that gives you a very high probability entry for a quick trade. Flow with the bigger money.


nocved said...

Hi Surarel

Found your blog this week and glad I did. Great analysis and many interesting observations.

I'm a former floor trader attempting to transition to screen trading. I find the delta and footprint charts more promising than traditional technical anaylsis.

Your blog is a must read for me now and is aiding my learning curve.


Surarel said...

thanks Tom for your kind words. I am still an intern myself. I am sharing my thoughts aloud to help myself and fellow traders. Cheers.