A Professional Approach to Trading Futures

[steven46]

Earlier today we were asked how we integrate higher time frame
charts into our process. This is an important question

We use two time frames, daily and 4 hour charts as shown
We also use a term that (typically) retail traders do not use
called "Trend Origin". This is usually the 2nd candle in a trend
move and it is often re-tested by Institutional algos, that is to say
it acts as a magnet, but also activates automated buy or sell programs
to create reversals trapping the uninformed participants on the wrong
side of a strong move (Professionals call this being "Trapped Out" of a move)
Those trapped on the wrong side, usually wait for a short period of time
to confirm their mistake and then they chase, providing the fuel needed
to keep the move going.

Good luck

 

[steven46]

And at the Close of the US/Euro Overlap
we see the anticipated reversal as successful traders
take profits. This is anticipated because of the tendency
for the US president to say things that moves markets.
Traders know this and will take profits, increasingly moving
to cash during the off periods (as a form of protection)

We are into the "Dead Zone" now, until the last hour of the
NY Session. Because we have significant profit, we will not trade
the last hour MOC order candle, which occurs in the evening London
local time. No point really in taking that risk

Good luck

 

[mtckmeek]

So ive noticed that you have posted about there being positive and negative skew in price when looking at vwap and VP. How does that work exactly? I know that institutions use vwap as a way of buying or selling at better than average prices and the POC indicates where the most amount of tranactions have taken place. So i suppose if vwap were below the poc and so was price it can be assumed that institutions have sold at above average price, but how can we know if they need to buy or sell inventory at certain levels?