How to be Consistent When Price is Rejected by Volume

Imagine a life’s work and a dream crushed in less than two paragraphs. The dreaded ‘thanks but no thanks – you suck – have a nice day’ rejection letter.

U2, Madonna, Walt Disney, Andy Warhol, Kurt Vonnegut, just to name a few, all received letters like this early in their careers. In each case the sting of rejection was short-lived, likely serving as motivation to push even further.

The judgemental landscape of the market is littered with rejection letters for price. Instead of being negative omens, these can be your ticket to profits — as long as you know what to look for.

Spotting rejection levels as they unfold positions you to make a move that retail traders can’t. Thanks to Order Flow Sequence Intelligence, they take the form of sequential decline and responsive activity.

Moments when volume backs away from price levels

Well before any letters are written or sent, the market provides a clear indication of what’s in store for price. You can find the signs of impending rejection locked within each candle, all while millions of retail traders idly sit and wait.

It takes the form of sequential decline and responsive activity, brought to you by Order Flow Sequence Tracking Intelligence. In both instances you can see volume’s real-time response to price levels unfold, giving you a chance to prepare for your entry.

Sequential decline can be found as price reaches a peak or valley. It takes the form of sequentially-declining buyers or sellers starting at the tip. It’s your sign that price is flagging with fewer interested parties.

When the other side steps in, also at the tip of a pricing extreme, you find responsive activity. It’s when these buyers or sellers have had enough and are now stepping in to push price in the other direction.

In both cases, these are welcome developments to any chart as you plot a swing trade and/or are looking for a scalp opportunity. You can spot these instances easily with Order Flow Sequence Tracking Intelligence. With the chart to the right, there are at least 5 chances (with the blue dots) to pad your account if you enter in time!

Making your entry before price rejection sets in

With any letter that you’ve been waiting on, it always seems that you read the very top and bottom to get a sense if it’s going to go your way. The dreaded ‘we regret to inform you’, or ‘we’re pleased to announce’ at the start that tells you if you need to frame it or take a step towards the trash.

When volume rejects price, you can likewise find the news you’re looking for at the tip of the candle with Order Flow Sequence Tracking Intelligence. This is brought to you within each candle, showing the actual positions being assumed by buyers and sellers.

Here are two candle examples for reference. On the left, you have aggressive sellers taking the Bid; and on the right you have the aggressive buyers willing to pay the Ask. With each tick, the positions taken are reported as they’re assumed.

Looking at the tips of the candle, you can see the classic signs that rejection is unfolding in the form of sequential decline and responsive activity. How?

• In the case of sequential decline, you see that the buying activity on the left has started to taper off – with sequentially fewer aggressive buying positions from the tip. This is highlighted in red as the activity tapers off and a move to the short side may be imminent. Likewise for the sellers, with declining selling activity highlighted in green (589, 286, 8) and a potential move up.

• In both of these instances, you see responsive activity from the other side stepping in, sensing that the position’s on the other side of the candle. The number is highlighted because the volume is at least 300% more than the corresponding side — an imbalance.

While retail traders blindly watch their candles move up and down, hoping that their lagging indicator will tell them what’s going on – you can watch this unfold in real time!

Easy scalping profits on either end of a candle

Ask any icon about rejection and they’ll tell you it fuels them to push for greatness. When the market is starting to show signs that it’s about to reject a price level, you have your opening to push for an entry.

When buyers and sellers are starting to taper off, and their counterparts step in – you have the makings for a swing, and at a minimum, a nice scalp. In any market, on any chart, you can watch for these signs – especially when price reaches for an extreme.

This strategy is best employed:

• During the Cash Session
• Using Volume Charts such as
– 10,000 ES and ZB
– 1,000 6E

When you see either sequential decline or responsive activity, your attention should be peaked. When you see both, ready yourself for a swing entry that’s well ahead of the rest of your retail trading competition.

Note the example to the right, where sequential decline and responsive activity has been highlighted at the bottom of a candle – providing an opportunity to go long.

Confirm your trade is a hit before it goes platinum

Swings can be one of the hardest moments for traders to spot. After a streak of great swing or scalp trades, you go cold — without changing a thing. How is this any different from the indicators you’ve used up to this point?

Advance warning and confirmation.

With Order Flow Sequence Tracking, sequential decline gives you the real-time volume activity — as it’s accumulating. Watching this before you make your entry puts you in a position to prepare your entry and monitor other conditions like Relative Strength Index.

You also receive live confirmation in the form of Order Flow Sequence Tracking Intelligence. With each passing moment following sequential decline and responsive activity, you have confirmation that price is in fact responding in your favor.

Note with our example how the scalp opportunities unfold — with real-time data. You have confirmation that other buyers and sellers – namely institutions – are on your side. Lagging indicators and blank candles would leave you guessing.

Lagging indicators can’t reveal this intelligence because they’re price-based. This means you’ll only see the reaction to these rejection levels after price has responded. With Order Flow Sequence Tracking Intelligence you’re positioned to move on the very next candle — and reap the rewards that come with being early.

You can turn the sting of price rejection into steady profits

Whether their career turned out or not, no doubt the rejection letters received by our famous icons shaped their career — especially in the early stages.

Unlike millions of retail traders who receive the news in the mail, eons after it’s too late to respond – you can see the letter as it’s written. Thanks to Order Flow Sequence Intelligence, this allows you to assume a position with the institutions that are writing it, profiting from the outcome.

Watch for sequential decline in the form of descending activity at the tips of a candle positioned in a pricing extreme. When you see this in conjunction with responsive activity from the other side, know that a swing is imminent.

Make your entry on the next candle, with the confidence of confirmation that price is being rejected and heading in the other direction.

After you’ve made your entry for a quick scalp, watch momentum build in your favor allowing you to stay in the trade and build your profit. Even better, if price turns in the wrong direction, you can monitor the volume and positions that allow you to get out and minimize your losses.

While others are scrambling to respond, gather your profits and plot your exit.

Don’t bet that price will be rejected — confirm it… with Order Flow Sequence Tracking Intelligence.

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