This is a guest post from professional trader David Blake.
As some of you know I’m a user of BloodHound by SharkIndicators to drive racing stripes on my NinjaTrader Charts, and a logic I frequently use from ZoneTraderPro has VXX coded within it among other dark arts.
Following the Market Action: August 8, 2021
I love to trade from the opening bell and get some trades done simply following the market action in that first hour. I keep a close eye on VXX via DXFEED, and today we had again some great early signals on VXX married up with the live HIRO Indicator on Bookmap.
Yes, NQ too has been moving around like a scalded cat as many of the fangs came under pressure early into the session.
I’m 5 hours +ET, and as the real trading hours RTH session got underway, the ES scooted off higher as we see on the VXX chart: it went the opposite direction lower.
It was quite an easy tell on the long from the bell, but as a scalper, once in a successful trade, it’s deciding when to scale out or exit to maximise profits.
The VXX chart gives us really clear signals at A (15:30), an hour into trading. We see VXX is reversing up and importantly, we also see a reverse in the live HIRO Indicator (them feisty unicorns!).
Mirroring that, we see ES reversing back down towards the opening range bar on the 575T chart, then a little later onto B, the VXX pullbacks lower and so as the VXX falls back, the ES grinds back up higher, and I’m just trading with the direction of travel and not fighting the trend to keep being green.
So in closing, good signals to add into your other charts and give added confluence to decisions. For me, this gives extra confidence to add weight to entries. Hope this helps and have a great week trading!