Friday - Damian Trade 1 and Volume Entries following a fall in Retail Sales in the US

An early GU trade setup formed with a DTFL ADR trade validated by volume, though this did occur during the Asian Session so is not a trade I took.

I was following Vincent and Pip in the Skype room, with Hank at Bencotto's on Friday following a Retail Sales announcement from the US that was below expectations. A USD - scenario that was used by SM to whipsaw the price, stop out a huge amount or RT's.

The A) setup was there because it was a lower volume retest of the same level, this happened 3 times, the 2nd time it was with candles 3) and 5) and note how all the moving averages are group exactly around this point. The 3rd lower volume retest of  the level was an entry I eventually saw and took, though SM had pretty much finished for the day the move still produced 8 pips of profit.

As it was Friday, there was no DTFL setup and the volumes were very low for the day prior to the details sales release, however VSAlift did produce an AJ trade which I took though there was an candle which at least hit his Stop Loss Point - this was the news candle - it would be interesting to see what this would of looked like on a higher volume mid week day.

I got a copy of Anna Couling's book on VSA, highly recommended by the people in the room, so I will spend the day going through this. 

Wanted to include some Great V and P Quotes - "if there are enough orders stacked to make it expensive for SM to move THROUGH either up or down, then SM can gap the price one way or another, this will leapfrog over traders who were in the red and they may hold on to the trade because these guys won't know when to TP anyway and those that get stopped will get stopped. SM can continue their push in the desired direction with very little encumbrance"

you  know what is funny V?

[13-Sep-13 7:01:42 PM] Pip: the same exact signal happened near the high and near the low

[13-Sep-13 7:01:52 PM] Pip: both were low volume retests..amazing

[13-Sep-13 7:02:43 PM] Pip: both solid signals, the only difference is that the first was a bit harder to spot (i didn't in the begining) because price did not retest the high, but the second we had the retest of the low near the low

before SM can move price they need to make sure the coast is clear.  So for example, if they plan to take price up they want to make sure there are no sellers in the market and so they they retest at price levels to see if sellers will jump in.  If there are sellers volume would increase (i.e volume bar will go higher) and so they won't take price up until they get rid of those sellers. 

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Will make a note to go through the entries days conversations on Skype, some really good stuff in there. 

For example - Elliott was posting examples of using the 61.8 fib retracement level as a way to enter SM trades that have been missed - he did post some charts to back this up though the links have expired - I will add this to my trading plane as a confluence factor. 

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