#ES_F big orders case studies Jan 12, 2023
Four scenarios appeared today that captured the impact of big orders on price action:
At 8.30am, CPI data released. The market dropped to 3954. Big orders came between 3970-3975 and took the market back to 4022 which served as resistance from the bear market trendline
The next big order came at 9.20am. The consolidated for few minute but couldn’t break above and then came down to 3957
At 10am, the market went from 3957 to 3970 which had multiple big orders pre market. I waited for the market to reclaim 3975. Right then, a big order came at 3971 and took market back to 4003 - exactly to the big order from 9.20am
By noon, the market was range bound following the volatile action from morning. I noticed a size order at 3990 that took the market to 4016.
Size orders are a great tool that influence price action in context with the market structure. I will be looking for scenarios where the price moves in the direction of the size order or cause a reversal in prevailing trend ie, test and reclaim.
Reminders to self:
Don’t trade Globex unless there’s an economic event
Structure the trades around resistance and support bases. It decrease the odds of getting stopped out early
Trade near bases. Don’t trade when the market has already made a big move
Don’t trade breakouts. Wait for a reversal followed by the second attempt
Keep in mind what’s happening in higher timeframe (4hr and daily)
Take the loss. Free the mind
Disclaimer: I am quite new to trading ES and still in the process of developing my strategy so please do your own research. For transparency, I will trade 4 rounds of 25 trades in SIM to collect an initial sample size for analysis.