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.
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2 comments:
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.
Thanks
Tom
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.
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