I sent this out on social media recently, on the 26th January.

And then again in last week’s newsletter.

<image: Weekend Market Structure & Price Action Study>

I hope that you didn’t just skim over this. And that you found the time last weekend to review the session and study the opportunity that was available.

Because… Wednesday – what a day that was!

<image: These sessions can make your month>

<image: These sessions can make your month>

<image: These sessions can make your month>

Let me be clear. This is NOT about prediction.

Yes, it’s perhaps obvious that a correction was due at some point.

But the timing and exact nature of that correction is always unknown.

This is not about prediction.

This is about recognising that there are some conditions in the market which can offer outsized performance. Recognising that there are some sessions which can make your month.

And then LEARNING from them.

Let’s not kid ourselves. They’re not the usual day-to-day sessions. These are the outliers. Maybe the markets will gift you an opportunity like this once a month. Maybe even less.

But you absolutely will get them.

And so if you skipped the prior exercise, you now have an opportunity to prepare for the next one.

Anyone who trades NQ, MNQ, ES, MES, YM, MYM, RTY or M2K on low timeframes – replay this sequence from Wednesday 10th February 2021.

(Those with other markets, or those reading this well into the future, look back through recent history for similar occurrences in your market. Or just make a note that next time you come across these outlier conditions you WILL take the opportunity to replay them and learn).

Study the sequence, not so much from the perspective of whether or not you could have seen it coming and positioned short earlier. That’s great if you could. But far more useful is this other perspective – having found yourself unexpectedly in these conditions, how can you recognise them and how can you get in short.

Replay the sequence and see if you can FEEL the difference in pace and movement from that of normal day-to-day price action. See if you can FEEL the panic as the market starts to drive lower with momentum.

And then find a way to exploit this opportunity.

For those trading the YTC Price Action Trader:

<image: These sessions can make your month>

<image: These sessions can make your month>

<image: These sessions can make your month>

<image: These sessions can make your month>

Or from the YTC Scalper perspective:

<image: These sessions can make your month>

That is not the only way in. A straight breakout play would have been awesome. And easier. It’s just not my style.

Regardless of how you trade though – the quicker you can recognise a change in conditions, the quicker you can adapt to suit these conditions and exploit their opportunity.

Replay the sequence. See if you can feel the difference in pressure behind the orderflow.

Learn.

And prepare.

You can’t know exactly when the next bearish momentum drive will happen. But you can make sure you’re ready.

Happy trading,

Lance Beggs

 


 

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