A trader explains how to read market direction in the first five seconds by comparing yesterday's close to its value area. If the close is above the value-area high, look for longs from that level; below the value-area low, look for shorts. Today's open trading outside yesterday's value area confirms the bias.
The first 5 seconds of the trading session tells you the direction the day will go because all you need to do is look at where the market opened and where yesterday closed. And you do this relative to yesterday's value area. We're going to use the volume profile over the previous day's session. And if yesterday closed outside of the volume profile, that helps us know which direction we'll trade today and it gives us the levels to trade from. For example, if we closed above the value area high, then the next day we would look to be long from the previous day's value area high. Or if we closed below the value area low, we would look to be short from that value area low. Now, if the current day opened up outside of yesterday's value, that is another bonus. And this adds on to your bias. So always remember to check for this as soon as you get to your trading desk. And watch how many losing trades you avoid. Save this and go study it on your charts to see for yourself.
