🚀 Trading Recap – Explaining Yesterday's Home Run Trade
Hey everyone! 👋 Yesterday, I took a long trade and hit a 24-point home run! 🏅 Robert and some of the traders in our daily market talk (LIT Day Trading Community) asked me to break down my trade from yesterday, so here’s my recap. I’ve attached three screenshots: two from TradingView (3min, 30min) and one from my execution software (barchart + 3min) with some explanations. Market Overview: We are in the Triple Witching Week, and the trading conditions are unfavorable. Wednesday’s Fed interest rate decision was the key event. As expected, the Fed cut rates, which is a bullish signal for the market. The market was quite volatile, forming a tight value area with accumulated volume – likely gearing up for higher prices. - The pre-session saw a new all-time high. - The opening price during regular trading hours was very close to yesterday’s high, signaling strength and bullish momentum. The market then tested the prior value area with low volume, rejected the lower prices, and moved back to the daily POC (Point of Control) at 6688 (as seen in the 3-minute chart). Afterward, a pullback occurred with a liquidity grab, which was very visible on my Power Trade Indicator (>2,500 contracts in 5 seconds). I noticed the volume POC during the 3-minute pullback candle. However, I waited for the first 30-minute candle to close. It was a strong bullish rejection candle, so I decided to go long with two positions, setting a buying stop order just above that 30min-candle. Trade Execution: - First Target: A small range near the daily high. I was expecting a breakout, but the daily POC stayed within the opening range. - The move lacked significant volume, so I believed the market would return to the value area. - The market then stopped out my second position as it pulled back toward the value area. - Later in the day, the POC shifted higher, but the market ended up in a range. That was my recap for yesterday’s trade. 📊 I hope you found this content useful! Drop a like or share your thoughts in the comments below – I’d love to hear your feedback! What do you think about my trade setup? Did you spot anything I missed or do you have any tips? Let me know!