failed auctions
a thread 🧵
a thread 🧵
in this thread, I will cover the following:
- my way of trading a failed auction
- identifying a potential failed auction
- entry + invalidations
- optimizing your invalidation
- further context using order flow
- my way of trading a failed auction
- identifying a potential failed auction
- entry + invalidations
- optimizing your invalidation
- further context using order flow
basics
you have built up an area of value
fixed range tool for example or merging ranges together.
price attempts to shift move and break outside of value in one direction or another,
however, fails thus generally seeing follow-through to the opposite side of the range
you have built up an area of value
fixed range tool for example or merging ranges together.
price attempts to shift move and break outside of value in one direction or another,
however, fails thus generally seeing follow-through to the opposite side of the range
range context
if within fair value you have the following criteria, I have found there is an increased possibility of seeing a failed auction:
- majority new longs opening + attempted break to the upside
- majority new shorts opening + attempted break to the downside
if within fair value you have the following criteria, I have found there is an increased possibility of seeing a failed auction:
- majority new longs opening + attempted break to the upside
- majority new shorts opening + attempted break to the downside
identifying the majority within the range
use Exocharts dynamic profile tool, ive done a complete thread on this over here
use Exocharts dynamic profile tool, ive done a complete thread on this over here
entry + invalidation
typical entry/invalidation is upon the movement back into fair value with invalidation above the swing h/l
(decent) however:
the distance between movement back into fair value and swing h/l can be significant to a point where your R multiple is hindered
typical entry/invalidation is upon the movement back into fair value with invalidation above the swing h/l
(decent) however:
the distance between movement back into fair value and swing h/l can be significant to a point where your R multiple is hindered
entry + invalidation (2)
the optimization for this in my opinion, is to treat the failed auction as a mini range where the POC now becomes your invalidation.
thus increasing your final R potential.
the optimization for this in my opinion, is to treat the failed auction as a mini range where the POC now becomes your invalidation.
thus increasing your final R potential.
notes
- price must spend a decent length of time creating value before we can see the potential of a failed auction forming. (few days is great) for day traders.
- using dynamic profile to identify if the majority are new positions and which side they are on is crucial...
- price must spend a decent length of time creating value before we can see the potential of a failed auction forming. (few days is great) for day traders.
- using dynamic profile to identify if the majority are new positions and which side they are on is crucial...
notes (2)
for determining the favoured side a failed auction could occur on.
for determining the favoured side a failed auction could occur on.
𝗵𝗼𝗽𝗲 𝘆𝗼𝘂 𝗲𝗻𝗷𝗼𝘆𝗲𝗱, 𝗶 𝗮𝗽𝗽𝗿𝗲𝗰𝗶𝗮𝘁𝗲 𝘁𝗵𝗶𝘀 𝗺𝗮𝘆 𝗻𝗼𝘁 𝗯𝗲 𝗮𝗻 𝗶𝗻𝗱𝗲𝗽𝘁𝗵 𝘃𝗶𝗲𝘄 𝗼𝗻 𝗮 𝗴𝗲𝗻𝗲𝗿𝗶𝗰 𝗳𝗮𝗶𝗹𝗲𝗱 𝗮𝘂𝗰𝘁𝗶𝗼𝗻.
but more so covered some nuances i find helpful when looking at some of them and using context to my aid.
but more so covered some nuances i find helpful when looking at some of them and using context to my aid.
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