Routine & Nuances
Start every trading day by being well-rested. This starts the night before with an early & routine bedtime schedule.
Wake up an hour and a half to two hours before the opening. This early start will be to open the trading wall at BullBearsCo (12 screens and a laptop) TradingView regular hours 30 min TPO full & Split profiles, Volume profiles, and Composites of both. keep all profiles at 68% value area. Candlestick chart 5 min with Volume profile and delta regular hours with overnight. open two of them. One for the current trading session & another for the previous session.
Open in Tradovate TPO with overnight & regular hours 30 min as well as a 30-minute Bid X Ask Volume Imbalance footprint chart. Set the minimum number of bars to load to 219. Also, change the normalization mode to PerSeries & keep the Imbalance factor around 2.5 to 2.8.
Open the TAP Time & Sales aswell as the Trading DOM.
Identify the present day including overnight and regular hours Value area VAH, POC,VAL. Do this for the previous day as well as a composite of any significant moves and or the last sign wave.
You will have to learn how to do this on your own. No one in this world will help you and most certainly they will never ever tell you their strategy even if you pay for their course.
Observe the market & see how it plays out with consideration to your three action plans for the day.
It is wise to have Short and Long position areas located for one of three market conditions Trending up Ranging or balanced & Trending down
Nuances
Jim Daulton
" The balanced trading rules."
The more days the market stays in balance further tightens the balance.
" One, stay within balance."
"Two look above or below value/balance & extend. "
"Three look above balance and fail, then the opposite side of the range is your destination trade."
"Gap trading rules."
"Go with all gaps that aren't filled fairly quickly."
"The best entry is if the market attempts to fill the gap and is unable to do so." ( If TEMPO & VOLUME slow down on the fill then fade it.)
"If the market can fill the gap, then you look at the Value Area. Can you at least get overlapping value?"
( If you cant fill the gap then the odds of a late rally/ crash have increased substantially.)
"Trend trading rules...."
Anomaly has been retired from use as of 2023 from J.D. himself.
Poor High or Poor Low
Weak High or Weak low
Tempo
Volume Increasing or Depleting
Opens in range
Range days. Inside balance day, Break out and rejected day
Opens outside of the previous day's value area
Trend days
TPO Market & Volume Profiles Value Area, Value Area High (VAH), Point Of Controll (POC), Value Area Low (VAL)
Composit profiles
Volume Delta
Bid X Ask Volume Delta. Looking for an imbalance in the market
DOM Depth of market watching order flow.
Single prints
One timeframing
Trade one block at a time.
Mechanical refrences
Half back
Exces & Balance
What doesnt happin is mor important than what does happen
Overnight invintory
Market Settle
Unchanged refrenc. is a weak mechanical reference
Elongated profile
Range & Value area
Rouling reasion
Short covering & Long liquidation
Inside bar is a sing of balance
understanding what pations is.
Trend days disregard the POC and the Value area as they usualy one timeframe with only a single period pullback then continue one timeframing.
Gaps are measured from the previous days range high or low not from the settle.
Day timeframe traders tend to fade the previous days high and low as well as the unchanged settle level aswell as halfback.
Some of the best trades fly in the face of current market activity.
Nuances finer detail
If a market opens inside the body of the previous day's range, it is a high probability that we will have a balanced trading day. ( If it opens on one end of the previous day's range, that can change thw odds.)
If the overnight inventory is mostly long or short. there is a good chance that we will retrace that move.
When you have a poor high it puts the odds in the favor of returning to that poor high. ( Remember that it is just a single data point.)
Data points are not always action points.
when multiple dada points line up it should play out relatively quickly.
The "OPENING, UNCHANGED, HALF BACK of the present day & the POC of the previous day." These are all static references. Static reference is a reference
that is not going to change. Yesterday's High/ Low, POC, and Unchanged are all static.
Non-static references include today's POC, half back because that can change.
The more prominent the POC the higher the odds are that we will return and revisit it.
The Value Area is an extremely important reference.
If you see anything major going on today then you will see higher value overlapping to higher or lower values overlapping to lower.
Sometimes markets have to break before they can rally or rally before they can break.
Understand who you ar competing aginst on the day to day,
Too many single prints when opining in balance. Same amount may not be too many when breaking out of balnce to new all time highs.
Weak high/ low is at egsactly or one tick above or below yesterdays high/ low.
When a market leaves excess it usualy means the start of a new auction.
When a maket breaks out of balance it usualy is the start of a new leage.
If you look outside of balance & fail. The destination trade is the other side of the Value Area or Range (opposit extreem)
Go no go level.
Overlaping value is the 68% part of the profile overlaping up or down.
On a balanced trading rule day if you look outside of range and come back in once it may continue the new leg. however if it is in and out of range several times it is unlikly and may reverse.
Large gaps odds are that they are harder to fill.
Large gaps are strong big money.
Small gaps odds are easier to fill.
Small gaps are weak small emotional money.
if overnight inventory is mostly long or short then 65% chance of a reverse auction. ( unless they are in the context of a large gap.)
The closer the market is to its range at the open the more volatile and choppy the open will be. (Best to what an hour or so .)
If the open is close to the end of a range then you must be ready to act faster.
When a TPO has a thin profile. It is likely that the move will be retraced.
How much overall conviction is there in the market? Is it afraid to tag through static references or is it just blowing through them?
there can be not enough conviction and too much as well.
When a breakout occurs from balance, it may come back into range once but if it is back and forth a bunch of times the conviction of the breakout is low & the odds are that it may be a failed breakout.
when a two-sided trade occurs it reflects a short-term balance.
The initial balance is the first two time periods. If the Initial balance is not elongated and is quite tight with overlap it usually implies that the odds are for a balanced day on an inside balance open day.
One can be hurt by mistaking overnight covering rally of overnight inventory & vice-versa.
When coming Down to a strong reference like a previous all-time high. You have an 85% chance that you may get a bounce the first time.
Outside up or down day is where a close is outside the previous day's range up or down.