I've been anticipating today's (Friday's) Price Action since this past Wednesday. Key Levels plotted and in showing the Striker Levels on my reinstated Renko Chart, they line up almost exactly where I have my 2 targets.
This is like my version of a O&D Strategy, except I'm using Renko and the way that I'm utilizing Time as a factor is different.
11.75 Points to reach T-2 - Let's see if it plays out.
I was contemplating jumping in at the 6205.75 The Yellow Key Level on my chart, but it was too early in the OR. I wanted to see Price either drop lower and take out the SSL from the previous 2 days or run higher to meet with the 2 BSL pools above. ATHs we're in now.
In hindsight one may be looking at the 6207 - 6207 level (where a red trend-line rests) and ask, 'Why not enter into the position on the break of the TL?"
Great question. That is a very aggressive move and as I had stated above: "I wanted to see Price either drop lower and take out the SSL from the previous 2 days or run higher to meet with the 2 BSL pools above." So, I gave up 5 hypothetical points in potential profit in looking at a slightly larger picture, while not jumping the gun (so to speak).
In hindsight, yes, there would have been less risk (to the long side) to enter into a long position at the break above the Yellow Key Level 6205.75, as we can see in the capture above, but in real time I needed to make a judgement call based on what Price was showing me at the current time, my market analysis and my previous experience. Still remember, at this point downside was still an option.
So, I'll lay a resting Buy Stop Order just above that previous intermediate Swing High (to the left) I believe that it'll break higher at 9:50am.
As anticipated, I get tapped in and Price continues to run higher... at 9:50am 😉
Targets T-1 and T-2 are set to receive Price at 6220 for T-1 and 6225 for T-2
Why Place Targets There? - Targeting the T-1 BSL Pool were the book is showing me that there are plenty of passive orders... One cannot exactly know what type of orders, but Stop Orders appear to be the logical explanation. T-2 is a simple deviation off of the Low of the current run up and the High of the previous Swing High. As seen below.
Target T-1 in the crosshairs.
BOOM! Target T-1 Executed!
Notice how Price pulls back at that precise level after taking out my First Target.
Why? -- Glad you asked...
Key Level 6220 (where my 1st Target was placed) also where plenty of Sell or Stop orders from the previous High (as shown in the capture above) were resting. Swing Traders and investors on a Higher Time Frame are doing business here at that level.
So the Orders were taken, the front running orders were also taken out causing Price to accumulate in a range to collect all of the orders. It's called Market Efficiency!
Target T-2 in the Crosshairs...
BOOM! Target T-2 Executed!
Good for 11.75 Points
Look how Price wicks down to the previous Strike Level on Target Execution! What's happening is that Price is returning to the scene of the crime to accumulate more of those orders that didn't get filled the first time.
As you can plainly see in the Footprint Chart Below, there is plenty of Liquidity at that 6220 Striker Level for Price to return to and Feed! Again Market Efficiency!
See?
Now to tap the 6230 Level and continue to 'build' price higher...
Bigger Picture... There will be an upcoming Rate Cut Decision in the next couple of Weeks - Next week is a US Holiday Week - Futures Contracts are continuing to Rollover - Earnings... Plus there are a couple of rather large unfilled Gaps below Speaking for the ES.
All Time Highs and continuing to make this market Top Heavy!