Before the New York Open, the market had already accepted higher prices and squeezed over 100 points from the overnight lows. As price approached both London High and the Previous 4H High, higher prices were initially rejected and the market rotated lower. At first glance, this appeared bearish. The Information The rejection itself was not the trade. The important question was: Could sellers maintain control after the rejection? As price rotated lower, the market failed to facilitate continued trade lower and eventually reclaimed the Monthly Open. This was the first indication that sellers were failing to accomplish their objective. Opportunity Long participation was initiated upon the reclaim of Monthly Open. The trade was not based on the level itself. The trade was based on the market’s inability to maintain downside control after rejecting higher prices. Operator Note A rejection is not information. The market’s ability to follow through on the rejection is information. Lesson Most traders react to rejection. Operators evaluate whether the rejection is actually accomplishing its objective.

PM Session Read Price attempted higher prices during the New York PM session but failed to maintain acceptance. As buyers lost control, the auction began facilitating trade lower toward a previously identified demand area. Short participation was initiated following the failure of higher prices. The position was closed as price reached the objective, where responsive buying was expected to emerge. Shortly after reaching the zone, buyers responded and price rotated higher. Information creates opportunity. The objective determines when the trade is complete.