Friday's TF analysis

On Friday, I was focusing only on Oil, so I was not watching TF.  However, I was in Ed McCalls, trading room and watched one of his group take a long virtually at the low and had a very good trade.

If I was trading TF, I would also have taken a long near the low of the day.

Look on the 5 min chart we see that price bounced up around 09:45 am (BST) and created a RPM demand zone as we had a good follow through.  Price then revisited and bounced off about 90 minutes later and reversed at the intrday high back down to the demand zone.  We then see a HVC bar piercing the low of the demand zone but closing at the top, giving a bullish out look and eventually we get a RPM bar breaking away from the zone for an entry long.

However, the 600 volume chart gave a better entry when we see a RPM bar breaking out of the zone for a lower entry price.

As this was the second visit to the zone, it was not perfect, but if price was to continue down, we would have seen a RPM bar breaking the low, so using the RPM, we can to tell whether buyers or seller are more aggressive at a zone and use this to determine our trade direction.