I want to put down my reasons for that last trade. It's obvious from 1h chart that we are in a huge uptrend. Market looks bullish, so I'm looking only for long trades. In overnight session market pushes up from 2068 level on an increase in volume. Then at the beginning of the US session market approaches that 2068 level, which acts as a support. In a bearish market that huge volume on a bar, pointed by an arrow, would cause the market to break that 2068 support and the arrow bar would be wide spread down bar, closing on the low. But in a strong market that bar closes on the high. Only a demand can do that. There was still some risk taking that trade, because that huge volume on an arrow bar hasn't been tested yet. That means we don't know if there is still some supply present in the market. But I expected a quick bullish reaction for a couple of points.
It's the end of the day and time to review 2 trades taken today. Both trades were closed at breakeven. I took the first trade after the bar pointed by a first arrow. This arrow bar is a test of a previous bar, which is a shakeout. Test bar has a low volume. This indicates there is not much supply present in the market. I didn't take the trade immediately after the close of a test bar, but waited for a reaction after the test. I got it, market moved 1 point higher and at that moment I went long. The bar that immediately follows an arrow bar is an up bar, but sadly it's on a low volume. At that moment I realized there was not much demand, meaning the market wasn't going any higher at that moment, so I closed the trade.
Approximately 4 hours later the market makes an upthrust on a 1h chart. It's power is greater in a bearish market, but not so much in a bullish market. Nonetheless it still indicates weakness, but it might be only temporary, not even enough to push market any lower. But then I thought that market had moved quite a lot in the past few days, maybe it's time for a small pullback. So I entered a short on a low volume up bar on a 10 min chart. Market doesn't go anywhere, so I closed the trade.
Today I took 2 trades, both ended with a loss. I took the first trade, because market had moved down in an overnight session on an ultra high volume down bar, closing off the lows and then reacted to the upside. Then came a bar, pointed by an arow, which was a test. I took a long trade, which was stopped out. Market moves lower, making a lower low and then moves back up. The second trade I took when the market approached the level at around 2066, which acted as a resistance on a previous upmove. Unfortunately market makes another leg up and I was stopped out.
