I was chatting with a customer on Skype today and he sent me a link to the YouTube video below.
I was looking for a long at that area and instead the recon tape-"sheep meter" showed otherwise. In addition when taking the short the hyper red convinced me to hold onto the trade for an additional point in profit. ( Normally I scalp out at 4 ticks). -
As you can see, around the 50 second mark, he reset the strength meter as price moved towards the lower end of the price channel. At just after the 2 minute mark, you can see the Reconstructed Tape pick up the pace and you can see the strength meter showing overwhelming selling.
This highlights a couple of things.
- That the trade location he'd picked was significant because of how the activity picked up at that point.
- How levels are important but don't necessarily need to be "short or long" levels. Opportunity was there at the level, you just had to figure out which side to play it.
- That the Recon Tape and Strength Meter are excellent tools in their own right to confirm a trade (of course, I am a bit biased there).
As usual, go to Full HD, Full screen mode to watch this video:
You can also see this video on a thread on the Futures.io forum which is dedicated to "PATS Trading" which he is using to identify trade location. Click Here to go to that thread.
Many thanks "PATS Trader" for the video.