Day trading checklist
-What is the Monthly trend telling you. ( Is it a young trending market or old trending market or is it in balance?)
-What is the Weekly trend telling you. ( Is it a young trending market or old trending market or is it in balance?)
-What is the Daily trend telling you. ( Is it a young trending market or old trending market or is it in balance?)
- Overnight inventory, In or Out of Balance, Long or Short, Gap or In range.
- Previous days Settle, In or Out of Balance, Long or Short.
-Were is the open
- Where are we in relativity to the previous days range.
-Where are we in relativity to unchanged from yesterday.
- Single prints or Excess.
-Are there too many single prints in context to the currant market conditions.
- Poor highs or lows.
- Weak highs or lows.
-What is happening at very visual levels.
- Pace of Tempo & conviction.
-Where is half back.
-Monitoring for continuation. (Ex go back through halfback, then move past the opining, then move past the early morning trade high/ low.)
-What would it take to change value? ( Value Area overlapping high/ low).
-Is the market Balanced or Imbalanced.
- Weak or Strong Daytime frame traders.
- Observe all this on Daily & composite timeframes.
- Footprint Bid X Ask Volume Imbalance
- Order Flow, who are you trading against where and what kind of liquidity is present?
Auction market theory 100 %.
Wake up two hours before the market opens.
I don't have to trade today or any day.
Never get short in the hole or long on the mountain.
Don't be a top tick, Tommy.
Avoid entering off the POC on a balanced day. (If you must be sure it is a gap trend day or trend day. observe that the market cant break through VWAP as well the POC and hold value their. At witch point you may enter off the POC. Remember it is not so exacting.)
Enter at low-volume nodes only.
What for the trade to come to you.
Only two shots per trade entry zone.
SMB Mike Bellafiore "One Good Trade."
BullBearsProCo # 1 trade. (BALANCED MARKET CONDITIONS)
The previous day was a balance day that settled in range.
Today we open in balance.
Observe "A,B" Period.
If the market breaks out of balance and fails.
Fade the move.
Start to scale out at the POC.
Keep in mind the opposite end of the previous days range as a target.
BullBearsProCo # 2 trade. (BALANCED MARKET CONDITIONS)
The previous day was a balance day that settled in range.
Today opens in balance.
Observe "A,B" Period.
After a balanced daily profile has been established. ( Usually the top or bottom is put in the first two hours)
If the market breaks out of balance and fails. With the addition of range extension.
Fade the move.
Start to scale out at the POC.
Keep in mind the opposite end of the previous days range as a target or potential destination.
BullBearsProCo # 3 trade. (BALANCED MARKET CONDITIONS)
After market imbalance and Ciaos ,up trend, down trend more then one day type intraday with poor market structure.
The market finds balance.
it develops a multi time frame profile
then breaks out of that balance and fails.
Fade the move
Start to scale out at the POC.
Keep in mind a break out opportunity in the opposite extreme of the range followed by a new lag or run provided volume & acceleration build.
BullBearsProCo # 1,2,3 trade. (CONTEXT)
Markets trade in balance around 80 % of the time. This could be the foundation of a trading career.
If the market opens at an extreme end of the previous days profile with conviction and strong Tempo then you may need to act quickly.
If the market opens with in range of the previous day. Then you are better off not trading in the first hour so you can watch where value is developing.
The top or bottom is usually established in the first two hours of the open.