Lessons from the live room: why was yesterday such a great trading day?

In the live trading room yesterday, finally we were beneficiaries of a market trading back on itself after recent “new territory” prices.

The auction was now trading at prices that had been repeatedly traded the previous three sessions. We knew where participants were agreeing and disagreeing on doing business, data that we build our best trading days from.

For example, our first trade was triggered when price moved into the area as noted in the morning prep notes and chart below.

“…have a large gap above from 0.7241 to 0.7258 where the Asian session hasn't traded between sessions. In addition, it’s also a low agreement area based on the last three full sessions…..plenty of protective orders above all the failed highs from the last couple of days which if triggered in low-agreement will create a demand/supply imbalance leading to an aggressive move to the upside….”

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