TRADE WITH THE MARKET, NOT AGAINST IT

Ensure That A Clear Price Action Signal is Setting Up

Before you trade, it is advised to have a methodology that you are comfortable with for mapping the market and determining potential price projections.

If you do not already have a methodology for mapping the market, consider using Ludwig Levels on a larger size bar chart along with the Sceeto's order flow algorithms.

Using these tools will allow you to determine upward and downward market direction, major and minor support/resistance, conclusionary order flow, and the strength of trends.

If 'they' are buying, we are buying.

If 'they' are selling, we are selling.

Is price action and order flow congruent?

Price action and order flow are bullishly congruent when:

Buying begets upward price discovery with follow through, and also...

Selling begets upward price discovery with follow through.

Price action and order flow are bearishly congruent when:

Selling begets downward price discovery with follow through, and also...

Buying begets downward price discovery with follow through.

Rule of Thumb for 'Follow 'Through' - -- If price does not move enough to have warranted a trade, then there has been no 'Follow Through'.  If you are on the sidelines and 'miss' the follow through, that is ok as the 'Follow Through' event is a tell that the current market environment is likely ok to be trading in.

When to Stand Down (Which is much of the time)

Stand down when the market is in chop and / or, the market is providing false signals.

If buying comes in and price moves up but immediately reverses, and then selling comes in and price moves down a bit but then moves up a bit, but only takes out a recent high then goes back again, the market is telling you that there is no clear direction.

Having no clear direction is an important tell.  If the market does not know what it is doing, then we as analysts do not know what the market is doing.

During these occasions, it is best to stand down and wait for clear signals of market direction.

In a nutshell:

if the market is not doing anything, don't bother to deploy Sceetos.

If the market is moving up, consider deploying Long Sceetos.

If the market is going down, consider deploying Short Sceeos.