This is a recording of a webinar on the TopstepTrader Squawk Radio Show on 6th February.
There’s a school of thought that says those that got into the market at the high or the low of the day are the best of professional traders that paid “wholesale prices”. That everyone else paid “retail prices” and are mere amateurs. Yet sometimes there’s just a handful of contracts traded at the extremes, so are we to believe that 20 contracts of professional trading turned the market around?
If you day trade, it’s great to buy the low of the day unless it’s the fourth time you tried it and the market ran through you on the first three attempts. At Jigsaw Trading, we have a name for those that look for longs when the market moves down (and vice-versa for shorts), we call them “permafaders”.
You can’t ignore major intraday reversals as a day trader but taking a shot at every support/resistance level doesn’t work. Trending markets tend to move, range, more, range and so on. Each time the market goes into a temporary range, there are traders jumping in thinking it’s reversed.
In this webinar, we look at ways to avoid getting caught by these “fake reversals” and how to distinguish between them and an actual turn in the market. Once you understand the anatomy of a reversal, it becomes much easier to day trade on the right side of the market.
The video is here: (as usual click Full HD, Full screen mode for best results)