Morning Session Highlights

1. Contract Rollovers:
   • Key Update: ES & NQ rolled over to the March (H) contract, and CL shifted to February (G).
   • Trading Lesson: Always monitor rollover dates to ensure you’re trading the correct active contract with maximum liquidity. Misaligned data or outdated cycle sheets can lead to inaccurate analysis.
2. Early Market Moves:
   • ES prices rallied, fulfilling the initial target zone of 6140-6145 (March contract). The bullish scenario relied on sustained bids above 6130.
   • NQ Open Range Strategy Long fulfilled all targets (screenshot)
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   • CL trade executed at 70.99 with an initial target achieved at 71.09.
   • Trading Lesson: Identify key levels for entry, target zones, and confirmations. Sustaining a bid above significant levels signals potential trend continuation.

Mid-Morning Adjustments

1. Cycle Day Sheets:
   • Some participants noted outdated values due to the contract rollover. Adjustments were confirmed for the following day.
   • Trading Lesson: Validate all reference materials, especially after major events like rollovers. Real-time accuracy is essential for informed decision-making.
2. Key Observations:
   • PTGDavid emphasized core zones and reclaiming levels, such as the NQ reclaiming VWAP (Volume Weighted Average Price).
   • Trading Lesson: Reclaims of prominent levels, like VWAP or prior highs, are often reliable signals for directional moves.

Afternoon Session Developments

1. ES Breakout and Range Expansion:
   • ES cleared a prior swing high at 6155 and successfully reclaimed it after a pullback. This facilitated further range expansion.
   • Trading Lesson: Use pullbacks to significant breakout levels as potential re-entry points for trades. Reclaiming these levels confirms market strength.
2. Slow Momentum with Sustained Buying:
   • The market maintained a steady grind higher, showcasing controlled buying pressure.
   • Trading Lesson: In slow, trending markets, patience is key. Avoid over-trading and let the trend confirm itself.

Closing Session Insights

1. Sell Imbalances and Rebalancing:
   • Late in the day, a $5 billion MOC (Market-on-Close) sell imbalance was reported, contributing to a pullback into the VWAP zone by the close.
   • Trading Lesson: Large imbalances near the close often signal institutional activity. Monitor these levels for potential reversals or new trends the following day.
2. Cycle and Statistical Edge:
   • The day closed with a positive 3-day cycle, keeping a 92.68% streak alive. However, a potential decline was hinted for the new cycle starting tomorrow.
   • Trading Lesson: Incorporating historical patterns and statistical probabilities can give traders a directional edge. Use them as a guide, not a guarantee.

General Takeaways

• Planning and Discipline: PTGDavid’s consistent references to target zones, reclaim levels, and structured updates underscore the importance of having a well-defined trading plan.
• Adaptability: Adjusting for rollovers and addressing dynamic market conditions, like imbalances, illustrates the need to stay flexible while following a strategy.
• Community Collaboration: Engaging with peers for clarification or updates, such as cycle sheets or chart overlays, enhances understanding and decision-making.

By focusing on actionable levels and adapting to evolving market dynamics, PTGDavid’s posts offer a masterclass in maintaining discipline, using technical tools, and leveraging statistical insights to navigate the markets.