What if I told you we knew this news in advance & made good money trading it.
How?
Read on..
How?
Read on..
There are two things which I use -
1. OI
2. PA
While OI act as Leading indicator, PA is the Ultimate real time indicator. If you combine these two, you can find any Operator's activity.
Today's case being of #IEX.
Let's analyze step by step.
1. OI
2. PA
While OI act as Leading indicator, PA is the Ultimate real time indicator. If you combine these two, you can find any Operator's activity.
Today's case being of #IEX.
Let's analyze step by step.
OI-
The EOD OI data on Friday, 29th was clearly indicating towards an upmove, giving a target of 165.
But we need confirmation from PA too..
The EOD OI data on Friday, 29th was clearly indicating towards an upmove, giving a target of 165.
But we need confirmation from PA too..
PA wise,
It was consolidating in a tight range for 3 days.
After that an upmove came in initial 5 min on 29th & again consolidation occurred.
This was a clear cut sign of operator's activity & indication that they were onto something big.
Now,
It was consolidating in a tight range for 3 days.
After that an upmove came in initial 5 min on 29th & again consolidation occurred.
This was a clear cut sign of operator's activity & indication that they were onto something big.
Now,
sensing this as a good opportunity to go long, I kept #IEX in my watchlist for monday, which I shared with you guys too.
Next day..
Next day..
#IEX opened flat and then started going upwards with good green candles.
Eventually it ended the day at 4% gain at around 166 after confidently crossing the target of 165 given by OI.
Now comes the interesting part...
Eventually it ended the day at 4% gain at around 166 after confidently crossing the target of 165 given by OI.
Now comes the interesting part...
Next day, it was flat in morning..
And at around 11 am the news of "removing cap on high-price market segment" came & IEX quickly shoot up.
(See the candle at 11:15)
But look at the cadle just after that.
And at around 11 am the news of "removing cap on high-price market segment" came & IEX quickly shoot up.
(See the candle at 11:15)
But look at the cadle just after that.
This.. is a Climax candle.
..formed because retailers came rushing to but #IEX in huge quantity after the news, thinking that it'll zoom up now and Operators dumped all their shares to these retailers. That's why this candle has very little spread & big volume.
Look at the ....
..formed because retailers came rushing to but #IEX in huge quantity after the news, thinking that it'll zoom up now and Operators dumped all their shares to these retailers. That's why this candle has very little spread & big volume.
Look at the ....
.. movement of #IEX after this news.
Prices are stagnant, not moving much. This is distribution phase of market cycle.
Operators made a neat profit in cash as well as derivative markets by knowing this news in advance & now they are exiting their positions.
This ..
Prices are stagnant, not moving much. This is distribution phase of market cycle.
Operators made a neat profit in cash as well as derivative markets by knowing this news in advance & now they are exiting their positions.
This ..
.. whole example & explanation consolidates the fact that I keep on saying..
" If you read data correctly, you can make enormous amount of money from market."
" If you read data correctly, you can make enormous amount of money from market."
That's a wrap!
If you enjoyed this thread:
1. Follow me @CnceptualTrader for more of these
2. RT the tweet below to get my Cnceptual Watchlist for Tomorrow.
Thank you.
X0X0
If you enjoyed this thread:
1. Follow me @CnceptualTrader for more of these
2. RT the tweet below to get my Cnceptual Watchlist for Tomorrow.
Thank you.
X0X0
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