ES: details of the trade on the 19th. JUN23 > 8 CONTRACTS >
A little bit about my trade, or rather the two I opened on the 19th this week.
The first slide is a cluster chart of the ES500.
Standard core levels of the week, major support and resistance levels.
Also added is the VWAP weekly and daily timeframe indicator.
On the chart marked with a circle in green the opening point of the first buy.
How the support level in the range of 4154.5 and 4151 was established is marked in green on the slide.
On the slide #2 is the 17th Monday. The m5 timeframe was chosen to approximate the picture of the buyer/seller imbalance distribution and you could see what kind of volume spikes occur. Such a moment should not be missed, especially look at the slide #1 to see how the price reacted subsequently.
I expected the breakthrough and test support on the 18th, but the price waited at this level only on the 19th. Those who know how to wait, the market will certainly reward.
If you have studied the slide 1 carefully, you should have seen that the price already tested the support level at 4 o’clock, why did not I open a buy?
Just below the red arrow will answer the question. You should not buy when the market imbalance is not in your favor. The preponderance of sellers did not give a signal to open buy, and only at the end of the 7th hour buyers showed a good imbalance.
Now a little about the choice of entry point and 2 buys.
On the slide #3 is the trading window and on the chart you can see the 4 contract purchases at 07:54 and 08:01.
I count these two purchases as one trade. I just open first 50% contracts as a tactic, when there is a buy confirmation signal, if my entry point is correct, then another buy confirmation signal should follow and I use it to open second 50% contracts, this tactic helps to decrease risks and losses in case I have made a mistake when choosing volume support levels or opening a position early.
I use complex orders with automatic stop order and trailing settings.
When you break your lot into multiple entry points, it is easy to get confused with stop orders and simply make a mistake. It is complex orders that save me from such a risk and possibility of making a mistake.
On slide 4 of the Gif format I have tried to record for you the moment of making a trade.
There is enough liquidity on ES500 to handle 8 contracts and there is no problem to open deal by market order. Moreover, tactically, I analyze Flow Dom Level 2 / Time&Sales Cluster bid/ask to determine when to send the order – it reduces the risks and reduces the range of stop orders.
Slide #3.
Including the second buy trade – a total profit of $2,150.
VolFix Company / author & trader: Mikhail Lemah
