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More from @ES_F_Leo

LeoTheTiger

@ES_F_Leo

Mar 8

Absorption Part II

In the last video / thread we covered the mechanics of what’s happening when absorption is occurring. The DOM was used to help visualize what is happening “under the hood”.

But, do you need a DOM to find absorption?

Nope. 🧵

This week we are going to look at a few examples using the footprint and how I use it along with a “delta by price” profile, this is essentially a volume profile but where the ask volume - bid volume is calculated and the delta is the difference between that calculation.

Example

Example footprint.

This only displays deltas and I have a threshold of 75 to actually color the bar, also noteworthy that this is a “compression” of 8 ticks so that means each “block” on the footprint is 2 points on NQ, Sierra combines each 8 tick increment into a single block.

Read 26 tweets

LeoTheTiger

@ES_F_Leo

Feb 23

Absorption when properly understood and executed on is an approach that uses specific criteria to that gives a great trade setup.

You may hear the term “trapped traders” and while this name is fun and catchy I don’t really subscribe to the idea...

Lets' do a run down.

Something I have long referred to as liquidity zones...

When we move away from these area’s it is not a result of trapped traders but traders get “trapped” as a byproduct of running into areas of high liquidity.

Perhaps its semantics but when watching the DOM you can see these area’s being traded and the more time you spend watching and understanding what’s happening, it will become more apparent to you that it’s the passive party that is dropping liquidity in zones like a firehose.

Read 24 tweets

LeoTheTiger

@ES_F_Leo

Jan 21

Trading during a Trump Presidency

A practical guide… 🧵

For intraday traders mainly..

This is a guide written mainly for intraday traders (fancy term for day traders) who mainly trade futures markets. If you haven’t traded during the last Trump presidency there are somethings you should know and be aware of.

As a rule of thumb when it comes to financial markets, Trump is predictably unpredictable with respect to what he might say , tweet or what his advisors or cabinet might say. Either way, this is a net positive for trading because it introduces more volatile moves.

Read 21 tweets

LeoTheTiger

@ES_F_Leo

Aug 25, 2024

In the trading community we hear and repeat many things that are widely accepted as fact, without anyone really challenging the view.

Here’s an example:

”Markets stay in balance 80% of the time and trend 20%” of the time"

Lets talk about it...

I certainly believed that too and I have seen this repeated and repeated it myself over the many years I have been trading. In fact I designed most of my trading approach around this simple idea that I should be “fading the edges” and trading from “extreme to back to the middle (balance)”. I also know that many of you do the same.

Would you be surprised if the data said differently? If it said that trend moves are more frequent, so much so that they occur just as frequent as balance days or non directional days? When I dug through the data at the beginning of the year I certainly was and it has informed my trading and many others that I know in a significant way.

Read 15 tweets

LeoTheTiger

@ES_F_Leo

Jan 14, 2024

Single Prints

A simple market profile concept you can utilize without being a market profile purest.

🧵

#NQ_F #ES_F #futurestrading

2/ Market profile AKA TPO charts are essentially a 30 minute candle chart organized by using letter sequences that represent each 30 minute period. For example the RTH open would start with the letter A then 30 minutes later the letter B so on and so forth.

3/ A single print is a period inside of the session where there is no overlap to prior periods.

Example in the picture.

Read 12 tweets

LeoTheTiger

@ES_F_Leo

Apr 15, 2022

1/ Trading with Delta contd..

#FuturesTrading #Trading $ES_f $NQ_f $RTY_f $SPX $NDX

Last week a wrote a thread about how I use delta in day trading futures markets. Here's a few thoughts and chartbooks.

2/ NQ - I use a 1-10 Point and Figure with tick size of 2

3/ ES - Now, I don't trade ES nearly as much as I do NQ but here's the setting that I found most useful.

1-8 Point and Figure with a .5 tick setting

Read 12 tweets

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