12/22 Trade Review → +20pts/+$1000 on 2 Trades:
Here’s a screenshot of the day’s action. I marked up 2 spots on the chart that I want to discuss. Keep in mind that the white horizontal lines indicate the initial balance high and low (which are the actionable entry levels for my strategy).
1. TRADE #1: Long at Initial Balance Low → -4pts/-$200
Took a shot at a long right after 10:30am. Price hovered around the IB low for a while until I eventually took a small 4pt loss. Price action was telling me that a breakdown was the most likely scenario.
The market was building out new high volume nodes lower all morning, so I started looking short.
2. TRADE #2: Short at Initial Balance Low → +24pts/+$1200
Took a short around 11am and made sure to give it enough room to consolidate. Been getting chopped up a lot recently in these types of situations right at the IB levels, so I didn’t want to let that happen again today.
After about 20-30 minutes of sideways movement at the IB low, I eventually got the move down I was looking for. Once it broke, it was a fairly easy trade to manage and I probably should’ve even held it a bit longer (for around 30-35 points).
But after the stretch of sloppy trading and losses I’ve been having lately, I needed to lock in a nice 3-4R gain.
Written by Matt Thomas (@MattThomasTP)
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