Instrument : E-mini Nasdaq futures
Date : 2021-03-10 10h02 Paris
Today I will try to explain how I took a quick 30 points move this morning. This is really a trade that can make your day in a 2 minutes with a “in and out scalp”. How can you do that ?
- By thinking like a market maker / big players
- By using order flow and cumulative volume delta to help you
If you look at the price part from the screenshot, you can see that everything says BUY. You have several up trend lines + a bigger up move at london open (noted “big breakout” on the chart).
But using a cumulative volume delta indicator, you can see what the hidden part of this global up move: cumulative volume delta was decreasing. That’s a clue that we have sellers there (or most likely buyers are taking profits from the previous day because we had a nice up move).
The breakout violently rejected at london open is another clue that sellers are really around. Conclusion: these easy visual buys really looked like buyers traps.
When I saw that third up trend line (in blue) broken after it went straight to the previous high, I sold right after a small retracement and the price dropped 30 points from the entry in 2 minutes. I took my profit at VWAP, that’s all.
When the algos are drawing some obvious up trends that even a 5 years child can follow, do you really think they won’t take you out the long positions?
Remember : sometimes they need buyers to sell from, and sometimes they need sellers to buy from.