[003] Player II Has Entered the Game

Remember that Plan we were just talking about? Talk about a wild success am I right? From goal post to goal post, today’s RTH session (11/09) Intraday High and Low marked by our Plan (that was shared two (2) whole days in advance.) Wild!

How I Utilize A Plan

The [Plan-Type] may vary based on the context of the auction we are in. For this location of the current scenario :

1. I thought the market might seek to define a range of 15230 - 15470 and balance.

2. I thought the market might seek to find a new auction if we broke range.

15230 < : Unlocks bearish ideas
> 15450 : Unlocks bullish ideas

Since the plan was posted, we balanced 1.5 sessions inside the range. The market tapped our expected Seller Area, woke the beast, and unwound all local inventory. This participant was able to slice Price right into Buyer Area + Structure. This tells me that we’ve FINALLY, met a participant able to challenge Player I.

(Left : Market Profile, Right [5m] Candlestick, 11/08-09 RTH NQ)

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This entire trend was started from the last Plan written like above. 14450 → 15450
Once the market broke my long lasting Sell Pivot, we launched the “Multi Day Trend” and traded (as of now) +1000 points higher for the last 7 days.

**Remind me to do a trend sequence discussion, hopefully before the last (free issue [010])**

The Open

The market had a controlled liquidation at Open, met some absorption against the positioning our last article [002] discussed, and began to reverse. The latest activity has been actively trending, the environment at this point of the session, was no different than previous. To my understanding, the Highs were not (yet) in. And this was true.

ORDERFLOW DOES NOT TRADE CHARTS

But if I were to best describe what an offer looks like when in control, it looks like this streak of red candles on the (1 minute) reference below. To orderflow however, it explains so much more.

(Left : [5m] Footprint, Right [1m] Candlestick, 11/09 NQ Open)

Now when this sell-algo met a participant at 15372, it backed off allowing weaker participants to get reeled in. This dark red print simply displays to me that a lot of sell inventory was taken in at that Price.

Now if this event occurs and fails to continue lower, the sellers that are still in that position of 372 are likely going to face a lot of pain. Logically, if a lot of inventory was taken in at that Price but fails to proceed lower, ideas of a large buy participant begin to come to fruition. Price eventually trades above weak inventory, shaking them out. This begins the squeeze to launch into…

Wake Up Mr. West Player II

In my plan, I expected a reaction coming from NQ 15450. This woke the first offer seen in weeks. Let’s take a look at the ‘Gentle Reminder’ he gave todays’ participants.

(Footprint [R], 11/09 High of Day)

Rejection : Auction from Below —

This is a textbook SetSpecial, but we’ll have to save that for another article :)

1. Seller initiates immediately from our point of interest.

2. Controlling sell-algo turns back on, liquidates all value established.

3. Small relief around local positioning — 15300 - 15310 Area of Interest.

4. Re-offers drilling Price into the other end of the auction — 200p lower.

It was clear that once the response from 15310 tape was resolved that this offer was different. Different in the sense that there are actually red candles on your screen, and with intent.

The tape Spiked into our fresh area of study, and seems other participants got the signal to run for the door. A strong bid was met with an even stronger offer. This penetrated the lows and Closed into previous structure — 15250.