Volume Imbalance Trade Example

A trader send this annotated chart in showing an example of how he executed his bias in the market. Of course you should always trade at your own risk and using only risk capital. Here were Don's notes. The basics for the trade was an idea that we would move higher as the closing imbalances were coming in extremely strong. Thus, I wanted to be a buyer. Trade location was determined by a horizontal development level and we know those turn into a vertical move after so many minutes. 

The volume imbalance chart by MarketDelta was extremely helpful in triggering the entry time. And, the imbalances helped me manage the position for a 6 tick scale out and a 10 tick closing. That is a $100 per contract average profit.

10-18-2013 ES Closing bracket Thursday

The Power of 3 - A Volume Imbalance Pattern to Watch For

Trade Walkthrough from End of Day on Friday