Nasdaq trade explained 01.14.2021

Instrument : E-mini Nasdaq futures

Date : 2021-01-14 10:00

Look at the screenshot below from this morning. Maybe you are thinking it’s time to sell this nice downtrend, right?

What if I tell you that I bought this and took my best trade of the day?

By looking at price only, you are blind, you don’t know who is buying or selling because price is the result of buyers vs sellers, not the cause.

I knew that this level was heavily bought thanks to our cumulative volume delta. We had the price forming a W pattern but look at the volume delta at the second leg, it’s a lot higher than the volume delta at first leg. We had a nice divergence and it was time to buy for a quick scalp at least.

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