Today’s session was a lot more tricky to navigate than the past two. We opened with a relatively bullish signal which however quickly dissipated and after some hemming and hawing near VWAP gravity quickly set back in. Great session to learn how to assess sentiment and participation after a series of selling sessions. It’s easy to get mentally locked into ‘business as usual’ after months of sideways churn where mean reversion is the name of the game. The dynamics shift significantly during a sell off and thus it is important to look for clear signs of a low (e.g. a spike low accompanied by a positive signal that remains for two candles or more) before jumping [...]

I just had to put together a wrap up video of yesterday’s session. That monster divergence had to be seen to be believed. However, that said – everything always looks clear in hindsight. So let’s run through the session one more time to see where you could have jumped on the gravy train.

Enjoy a re-run of today’s E-Mini session exhibiting participation as measured by our Zero indicator. On the left side is the hourly panel and the Zero Lite runs on the right via the 5-min panel. Swing traders and scalpers are encouraged to watch the 5-min panel for early clues – in particular price/signal divergences and lack of participation as expressed by a [...]

Enjoy a re-run of today’s E-Mini session exhibiting participation as measured by our Zero indicator. On the left side is the hourly panel and the Zero Lite runs on the right via the 5-min panel. Swing traders and scalpers are encouraged to watch the 5-min panel for early clues – in particular price/signal divergences and lack of participation as expressed by a flat signal. If you like what you see then may want to watch some earlier ones – you will find plenty of examples of what to look out for and how to avoid common traps when trading the E-Mini. Plus you may enjoy the tunes 😉

I didn’t add any comments today in order to assure a neutral perspective [...]