It’s the start of the trading week, and we had microgaps down in the most important markets (the index futures and the major currencies).
Microgaps are a hidden sign that there is a tiny buyer-seller imbalance at the start of the trading week.
Most often, if you look back at powerful moves, there were microgaps in the first few bars, which is why I pay close attention.
Why does this work so well? At the start of a move big money is getting positioned *before* the move is obvious.
Large traders getting positioned leave clues.
Since the big money wins most of the time the easiest way to make money as a trader is to bet on the side of the big money.
Easy, right?
If you want to know more about reading markets this way I have an excellent course in reading the price action bar by bar
Its the best material I’ve seen on price action 🙂
That’s all I got for today.
Scott
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