Last Updated:

ES 06-18 / 25. May 2018

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wtl Daily Digest

Referring to yesterday's daily digest I would like to go more in depth with the Chart Accumulated Volume Profile to emphasize how important it is having several tools to observe and anticipate which way aggressors will go. 

What we don't know and never will is the time when aggressors will dominate the market. Any market. Please read the Why? article to learn more about my observations about predictability of markets. 

One conclusion is:

Why can't we predict where the price is going next? Because we can't forseen when and how aggressively market participants are hitting the order book at the market price. The arrival of aggressive orders is hardly predictable.

To cut it short we have several possibilites to get as close as possible to the answer what happens next in a specific market.  

Cumulative Volume Profile

CVP is one of the tools which are of great help for our trading decisions. 

Other useful and important tools besides curent order book and CVP is without doubt "Quotes Delta". Maybe one of the underestimated tools we have within the LOB to understand the fundamentals of the market. We should have a closer look later on. 

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Instead writing and analyzing a lot about some good trading opportunities from 25th May 2018 it is helpful to understand the principle what happend at the long term high liquidity area around 2727.00 and, of course, before price headed to this area. 

You can rewind and repeat until the principle settles. It happens all the time. 

Music from Jukedeck  - create your own at http://jukedeck.com

Please leave your comment to describe your own experiences with CVP. 

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More insights here:: https://bookmap.com/blog/depth-trading-1-interview-walter-lesicar-trade-win-trader/

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