Adapting to impulsive FCPO movement
Yesterday’s note:
Today’s note will be about adapting to parabolic price movement. Yesterday, I was waiting for sellers to fade & reclaim 3971 high back into the the channel. However, that did not happen as buyers continue to bid higher, breaking previous SBR and stayed outside of channel.
Today, I posted two intraday charts on twitter(X) to update and adapt based on latest market condition. One for the morning session and one for the afternoon session. Neither both played out as there are no deep pullback and only one shallow pullback that I manage to capitalized.
In the morning, price gapped up and proceed to range for the rest of the morning session. While in the afternoon, price faded & reclaimed a local low (3918) from morning’s range which is also at lower VWAP band (green). Buyers came back in and were only able to pushed price back into the range resistance (3827 - 3835) before ranging until the afternoon session ends.
As at the market close, market is still consolidating in a right range without any direction. There’s a possibility that sellers might fade and reclaim the high of HTF range but my personal view is that this would be a short-lived moment for scalpers to secure a few ticks. I could be wrong as I like to trade with the trend rather than against it. On the buy side, there are two key lows that most buyers would be interested in: afternoon low and morning open low. Personally, the local lows at 3921 and 3919 are something I will monitor during the night session to see if it’ll be faded and reclaimed.
Depending on how the night session develops, adapting to market is key when it’s moving in such impulsive manner. Price could very well just continue to move higher without pulling back like yesterday when SPPOMA release supply figure.
Fade & reclaim behaviour:
