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Newsletter / Blog


2018-04-17
ES #F Dominating demand on low volume


The daily chart above shows our SUPPLY and DEMAND Dashboard and BXB (Bar by Bar) Signals.

Readings are based on Supply and Demand and Volume obtained from raw internal data of the total market. It is updated in real time during regular trading sessions and does NOT take into account any price indicators or mathematical formulas using price. We do however show the cumulative price change for the trading session and in some instances assess price movement’s relationship to Supply and Demand. It is therefore fair to say that the readings and signals are independent from other popular price indicators and others shown on the chart. The readings are an independent assessment of the one and only measureable fundamental market mover: SUPPLY and DEMAND. It does not matter if price is influenced by a geopolitical event, seasonality, fundamental economic data releases or sentiment driven news, etc. It all reflects in Supply and Demand, leaving “footprints” by the “Big Boys” or “Smart Money”.

 Price stayed above the important 2679.25 level and follow through occurred with a 23.75 point move up.

There were no obvious signs of weakness Yesterday. The only aspects of concern are the Divergence to the down side on the Volume Oscillator, which is approaching the Selling pressure level and the anomaly that price’s total movement on a day to day basis is lower than the previous day’s movement, whilst the Sup/Dem reading moved higher (indicated by yellow price movement and yellow warning block). The last 3 times this happened price declined the following day.

Dashboard:

The Supply and Demand Reading (1st row) was +22.8 Yesterday which indicates domination by the buyers.

Supply and Demand Direction (3nd row) was to the upside and strong (Lime arrow), indicating substantial strength to the upside.

Average Supply and Demand Volatility (4th row) is below 100% and bullish. The change in Volatility from the previous day was positive (bullish).

BXB Signals:

On the signals boards there is a Balanced market signal. When these signals appear it can lead to a pause or pullback in the market, especially after a day in which the market had a nice move in a direction. (1st row orange square).

Daily Volatility direction (2nd row) was up (blue triangle).

The NY Stock market traded down for the day (red triangle in 3rd row).

55% of stocks (4th row) traded above there VWAP (Volume Weighted Average Price) compared to the previous day’s 61%.

In short we saw strong demand Yesterday that pushed price upward. The volume was lower than the previous day. If a pullback does not occur, some sideways price action may appear in today’s trading session. We will be careful to take any long positions today, due to the warning signals.

Intraday

There were 2 opportunities during the trading session Yesterday on the 26-minute chart below:

Marked with arrows on chart. Strategy is simple, enter when 2 Dashboards align and exit when two opposite arrows on BXB Dashboard appears. Green arrows on chart show entries and red arrows show exits.

RISK DISCLOSURE:

The information delivered here is for educational purposes only and is not intended to be a recommendation to purchase or sell any of the stocks, futures or other securities referenced. All references are for illustrative purposes only and are not considered endorsed or recommended for purchase or sale by MC Trading.

Trading Forex, Stocks and Options, Futures and any Cryptocurrency, Commodity or ETF contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results and no representation is being made that any account will or is likely to achieve profits or losses similar to those shown. MCTrading has taken reasonable measures to ensure the accuracy of the information contained herein and on this website, however MCTrading does not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or from an inability to access such information or any delay in or failure of the transmission or receipt of any instruction or notification in connection therewith.


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