Recency bias and today's short
During the previous six sessions fading minor sell-offs in 6A have been profitable.
The past six sessions in 6A (10:30-16:00 AEST only)
So I faded a sell off this morning only to see bids get whacked at a pace I hadn't observed over the last six periods.
Stopped out, I watched the tape... over and over again, buyers kept trying to repeat what had been working for the last six days only to fuel continual downside movement.
I took the view recency bias was unlikely to change in the near term, presenting a great opportunity to get short and stay short.
From 11:40 AM AEST sellers were never under pressure
The learning points from today are:
You can build trades around recency bias
Reading the tape and order flow is fundamental to recognising who is in control
Trading a single instrument day after day is how you develop awareness of market nuances other participants don't see, giving you edge over your competition