Today was an excellent learning day that I want to share with you. What I did wrong today... Market Context :
- Monthly up trend.
- Weekly 2 week balance ( 59.05 - 55.75 ).
- We are trading below current weekly and monthly POC.
- 8-Day balance ( 59.05 - 56.75 ).
- Poor Low at day balance low ( from 11/29 ).
- Prominent POC from 11/20 at 56.14.
- Oil inventory number at 10:30AM
- Yesterday's short term traders : long ( pivot: 57.55 )
- Overnight : short ( pivot: 56.90 )
- Gap down
- Conviction : relatively low
- Gap rule
- Long short term traders inventory ( from yesterday ) was in big trouble at the low of a 8-Day balance.
- As soon as we have shown intraday POC prominency confirming down developing value it was putting even more pressure on weak longs from yesterday.
- What do we have at the balance high : Two selling tails ( from 11/27 and 12/1 ).
- What do we have at the balance low : A poor low from 11/29 ( the ellipse ).