Hey what’s up traders? It’s Futures Wire. Trader Steve here, happy Tuesday first and foremost, and happy it was, as we’re going to close out another green day. Big mover for us today, and it really wasn’t even that big, but it was a mover for us was copper, which I’m going to show you in just a moment and we still have a trade in play on the British pound yet to be determined. So look over my shoulder as I, I’ll walk you through the charts from earlier today. This is the copper 10 minute timeframe I want to focus on and early this morning you can see that the market had a big breakdown below that to 280, 279 mark. When we break down below this bottom green line, that represents the demand zone or the bottom level for the value area. When the market does that, typically markets are going to sell off.
This was literally 1:50 AM Chicago time, so I was getting my beauty rest, rest assured, market came down and then we went into this sideways pattern. Notice how we’re contained within those new value areas that shifted lower and then they started to get narrower and narrower. The distance from supply red line to bottom demand line got shorter and shorter and that’s a coiling up effect of the market. When we see that we want to get ready for the breakout move to the upside. 6:40 AM Chicago time we saw the market put its first stake in the ground in the bull camp. When I got in front of the screens and I was looking at this market, it was at right about here inside the value area. Okay, notice how we’re just kinda moving laterally and we expect that when we’re in that high volume accumulation zone.
The big break that attracted my attention was 7:50 AM on this bar right here. We started to emerge back above. At this point we are moving above that 278.99 level. We’re going to call it 279 even for ease. But when we entered long it was 279.30, which is right there where I’ve circled right there on that bar. Just a minute shy of that 8:00AM bar, market headed up higher right away, so we got some instant gratification. Market came up, up, up, up, and then we started to stall out. My original target was looking for the market to slide up through that long range bar that we see back left of the chart and we fell a little short of that. So I started getting aggressive on the profit taking, selling out three units at 280.05, sold out two more units at 279.90 and then I closed out the final unit at 280. If I draw an arrow of kind of how this chart went down, it went just like this.
So this ended up being where I’ve circled here, the area where we spent our time looking for that long breakout. And again, keeping with the theme we took what the market was willing to give and we got flat the market before the market started to grind lower and sideways here for the rest of the day.
Now let’s go over to the British pound as we have a trade that’s still in play here. Now I want to talk to you about why we initiated the trade and what the prospect is for it right now. So when we looked at the British pound trade, we started to see a kind of a similar pattern. We started seeing this volume aggregation here. This is market profile starting to show us as those lines extend further to the right that’s telling us that the market is likely to go sideways and build a real nice support down there.
Okay? So what we’re looking for is the break to the upside and a fill through that gap that we see up above. Okay? You can only see this if you’re using market profile. This is Taz market map indicator, okay? Just like that.
The other reason I was looking for a long entry on this British pound is we started to see on this indicator down here, which is called Taz navigator, an exhaustion warning. Now that’s those pink magenta color bars down there. And then we started to see an upward pointing trajectory on that which typically will be fueled by a bullish eventual move. Now you can see as the market started to break up above, we actually ended up failing on that trade. So our entry here, just to confess to you here, we got long at 130.84 which is right there where I’ve pointed to. Okay, we put our stop down below here initially at 59. It’s a low risk trade, $156.00 per contract on the wrist. So it’s going to ensure that we stay green cause we ended up pulling 1037 member on the copper traits. So we’re going to have a green day no matter what our risk is down here. So if the market continues to follow and breaks new lows down below those technical lows, we’re going to get flat and we’re still going to call it a decent day to day.
However, if we can get that market moving back through this congestion right here, and if we can get back into that open hole, I see there’s still going to be an opportunity. We’re going to find out here as we get into the afternoon and beyond, we’re going to see if this things got any legs left for a second search higher, but for now we’re going to have a green day no matter what. So I’m in a good mood. Happy Tuesday and good luck trade the rest of the way. Looking forward to meeting you back again soon. So long everybody.
Hey, I see you there. If you enjoyed that video, give me a thumbs up and leave a comment down below and be sure to subscribe for more great videos just like this from All Your Trading.