Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
shrekchenbin, Thanks for sharing your thoughts. I'm benefiting from your screenshots and the accompanied commentary.
Could you please let us know which is the indicator you're using for your TPO/Volume Profile? I'm learning to trade using volume/market profile and would like to hear your recommendations.
Thanks.
Can you help answer these questions from other members on NexusFi?
What a beautiful maneuver in DAX again. The market maker definitely worth a round of applause that they were able to convince a boat load of retail investors that the DAX is going to make a new high very soon (including me). This group of hopeful pullbacks buyers are all trapped. Some of them have already puked. Yesterday around 12850 I have seen a stop of of 80 contracts being puked and absorbed by the market maker. He who has puke would be grateful that he has puke around 12850 because now DAX is trading around 12650. Do the math how much more paper loss he is going to inflict if he choose to stay on.
Given the pullback-buying-speculative long position built from 12950 to around 12800, the market maker has no interest in giving them a refund (break even exit) by trading up to in the vicinity of that level. The path of least resistance is to trade lower to probe the stops behind the 12600 low, where even more inventories will be puked. Now the situation is a typical DAX one, it has to go down first to clean the book before it can go up. Brace for impact, traders!
It seems that the weakness of ES and YM have been shaken off by either the strength in NQ or Russell.
Yesterday, the NQ was not able to make a new high anymore, Russel has still scored a new high.
But if we take a closer look at it, the break out yesterday was more of a fake out and the 1 week long range built at the top starts to resolve to the down side.
Of course, the buyers might try again today to seek a decisive break out of this range to the upside. Once that one failed, we could sell the failure and all the other indices are going to follow to the down side.
NQ has found resistance from last week's POC and it has found support from the POC of two weeks ago during the overnight session.
Basically, NQ has been caught between two value nodes. And the break out is going to come one way or another.
At this moment, the support is a bit stronger than the supply. If NQ were to be able to trap more weak longs at the high, then we are ready to roll to the downside for a big time.
The theme of yesterday was testing supply at 12580 below the prior support 12600.
After several tests attracting less and less supply, the market maker decided it is time to turn it around.
After that the consolidation above 12580 ensued and value is built around 12650.
Today DAX should be able to maintain its bullish stance when other equity indices are bullish.
Also the value and volume built at the 12580 low has been bigger than the overhead supply of the weak longs trapped on Monday, which is to say, technically, it is ready to challenge the 12800 area.
In today's session, I would like to see the 12700, 12680 being re-tested before taking the final assault to retake 12800.
From this 240min chart with monthly TPOs, it is really clear that the DAX had its double top formation in place and confirmed by yesterday's decisive break of the neckline at 12523.
There are two scenarios from this point on,
1. race to 12300 low made on Apr 24th in one breath
2. Retrace high to fill some TPO holes above 12750 (take out some stops of the short sellers) before resume to the down side.
To me the second scenario is more likely as the selling of the yesterday's overnight session was merely a forcing action not real money selling. Get above 12520, the short covering is going to take u
s very quickly to 12620.
