Lecture Notes: Trading Strategies and Market Analysis

Opening Remarks

• Introduction to the trading session.
• Monitoring the new day opening gap for August 20th.

Key Concepts

• Opening Range Gap: Importance of identifying this gap for strategic trading decisions.
• Volume Imbalance: Notable areas of inefficiency in trading to watch for price movement.
• Price Action: Understanding the significance of price action in evaluating market behavior.

Technical Analysis Breakdown

• Chart Types: Focus on 15-second and one-minute charts for detailed analysis.
• Liquidity Levels: Identify areas of high liquidity, specifically:
  • New day opening gaps
  • Relative equal highs/lows

Trading Psychology

• Importance of patience and not jumping to conclusions too early.
• Encouragement to maintain a framework for analysis when watching recorded sessions.

Practical Trading Strategies

• Targeting Liquidity: Look for relative equal highs/lows near gaps.
• Using Screenshots: Capture significant chart formations for later reference.
• Patience with Price Movement: Understand that immediate results are not always necessary and can fluctuate.

Specific Trading Setups

• Daily Volume Imbalance: Focus on areas not yet traded to determine potential price targets.
• Inefficiencies: Recognize gaps where price has not returned to previous levels as potential entry points.
• Partial Profits: Importance of taking partial profits at short-term highs to mitigate risk.

Closing Thoughts

• Emphasis on the algorithmic nature of the market and its predictability.
• Encourage the practice of noting levels and price action for future reference.
• Reminder: Trading success involves acknowledging inefficiencies and being willing to adapt to market conditions.

Homework/Practice

• Review and practice identifying gaps, inefficiencies, and liquidity levels in upcoming sessions.
• Document observations during live trading to recognize patterns and improve reactions.