Order Flow Exposes a Massive Bull Trap (Live ES Breakdown)

Okay, so let’s take a look at November 6th, the trading day today. Even though I was leaning a little bit bullish heading into the open this morning, that was negated, even though I wanted to be. What I wanted to see didn’t come through, and as you can see, we had a big sell-off day today. That was sparked by some Fed members speaking about future rate cuts that the market did not like. I don’t know if that was the full catalyst, but that seemed to be the driver right off the open, or shortly after the open, that dipped the markets down considerably. As you can see, we had this bearish day that took out Wednesday’s low. You can see that right here Wednesday’s low was taken out on the day and really negated yesterday’s bullish bounce back to the upside. There was overnight consolidation, a slight pop-up overnight, and then that sell-off commenced all the way down to Wednesday’s low.

Let’s take a look at how the day developed. As we came into the opening session, price was already selling off pretty hard and took VWAP a nice little opportunity from here down to here which I did not grab because I don’t like trading in that particular overnight or pre-market session. I waited for the bell to open, and you could just see the market get hammered. You had 900 sell orders up here, another 200 here, 900 more here, and 1,200 pouring in right through here. This happened so fast this candle right here at 7,054 is just a statement of selling pressure. Then some more big-time sellers came in at 967.

Remember this key level, 6,777, was the prior week’s POC from two weeks ago, and 6,780 was the monthly POC. I don’t have it marked on here, but I know it’s right there. What we had here was a bounce off that 6,777 level. We bounced back up and then had a little bit of a bullish surge with some massive amounts of bullish buyers coming in, but they were unable to rotate the market and reclaim VWAP. We had a nice trap here around 150 it looks like some retail buyers got in on this bullish run a little late and got trapped. There was a near bearish shooter candle here, but with this trap and the amount of bullishness unable to move the market, I had the idea that we were going to rotate back down again to retest that POC one more time. I took a short here at this low for 13 points down to this level right here that was the trade of the day.

The rest of the day offered a few decent setups in the afternoon. We had this pop-up here, a failure at VWAP, and then a rotation back down. If you could grab that entry over here, you’d see some sellers come in. You could see that bullishness starting to fade 1,300 failing at VWAP and then sellers started to pour in again. Here you had 300 and another 400, breaking and rotating down. I didn’t take this trade either, but that was another opportunity during the day that you could have seized upon.

Hey everyone, it’s Dale here. I hope you enjoyed the video. If you’d like to trade alongside me and our team of prop firm–funded traders every day, then click the link below the video and hop aboard. We look forward to trading with you.