Friday saw price trading into a buyside volume imbalance from the previous day, inside the value area (Market Profile) as well - Notice the touch on the PoC too. Trade was executed with a target of the next sellside imbalance above.
Volume Imbalances are tracked using pound futures data via CME.
London Session - Cash Open - Displacement to High Liquidity Area (HLA) marked in blue with a liquidity gap. Trade was a long position from the HLA to fill the range
US Session - Cash Open - False breakout with market structure break (orange lines). Trade was a short position when the market retraced into the HLA (in blue area), coincident with a 62% retracement of...
Today's London Session trading based on a move to grab liquidity below VWAP at 1.2230 levels.
- 5:45, an HVN (High Volume Node) with the previous day vwap area.
- 7:30, bounces on vwap - with VPOC below.
- 8:15 , liquidity gets taken from the HVN.
- 9:15, 9:50, liquidity gets taken at discount prices.
-10:25 , structure broken to the upside ( goes above 9:50...
Today's trade on the pound was based on a short daily bias. Asian Session saw price moving towards yesterday's high. A short position was taken during London Session considering 1) a 70% retracement on the typical protraction that occurs when London opens 2) that we were touching once again the upper liquidity base after yesterday's liquidity purge on 1.39.
Today's trade on the pound was based on a short daily bias, once liquidity was purged on the buyside around 1.3920 early in the London Opening. Touching the base around 1.3940 was considered a sell after the purge.
Trade executed during London Session. As price breaks market structure, dropping below the early morning consolidation, a short is in place when the range is retested with a target on the next liquidity base.
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