Today's short squeeze. Trading against short bag holders

Having recently posted avoiding be caught holding the bag, it just so happens that today's Asian session trading was a feeding frenzy on the bag-holding shorts. All of today's 6A trading was taking the other side of short bag holders.

Check out the daily chart below which includes the first hours of today's Asian session. On quick inspection, it appears like value is moving to the downside. That's no accident.

However, spend a little more time and check out really what's going on. The highest traded volume (horizontal orange lines) remained within 0.7622 and 0.7641 for the 2nd, 3rd, 4th and 5th profiles.

This quarter, a buyer has accumulated at 0.7606 (dash-dot-dotted line in the chart above). With sufficient long inventory, yesterday 'they' allowed the market to rotate at lower levels (within the purple box and below) so shorts could load up. (It's an essential trading skill to know how to identify cumulative positioning)

Today is a complete revaluation to the upside (shape of profile key here).

I admire the work of those who pulled the levers behind the scenes, exceptionally well executed.

First, the hors d'oeuvre (see long-off pre-determined level) and then early into the HKE session, the appetiser was served (long off a primary pre-determined level), and all was complete in time for RBNZ rate data. After digesting market reactions to RBNZ, a generous main course was served with another long trade, with profits taken into a planned level. Dessert came a little later, allowing time for the mains to settle/rotation around a critical level). Today has been an enormous day, and we haven't yet traded into Europe.

All the horizontal lines marking key areas were determined yesterday. One instrument focus equates to deeply knowing your market

However, the opportunities highlighted above are not the main point of this post. Yesterday during the Asian session, the conditions to trade were difficult. The only times I was able to make money was into changes in session times. The rest of the time, I was picking up a couple of BPS here and losing a couple there. I couldn't get any traction.

However, it took being present yesterday to decipher the play, which provided awareness of optimum trading opportunities today.

The advantage of running a live trading room is that I'm accountable for rolling up for eight hours a day to locate and execute market opportunity every day. It’s the rolling up everyday that builds real skills. For some members, having somewhere to be (log into the room) has been instrumental for building a routine. Seeing someone else (me) experience successful days and pure grinding-it-out days, periods of ease, and periods of struggle puts trading into a healthy perspective.