Today's CL EOD charts and Utilising the Squat bar indicator

I have mentioned the 'Squat bar' indicator before, but I have never showed how I use it in my intraday trading.  So I will show how It works on the time based charts, especially the 5 min.

The idea of the 'Squat bar' indicator is based upon the VSA principle of 'Bag Holding' and 'End of a rising Market', where after a large move, we have a large volume bar, but with a small spread (range).

This shows where the limit orders are stacked and is acting as resistance to the momentum.  This does not mean that price will reverse, It may stall for a while, eating away at the limit orders, before breaking out and trapping the counter trend traders.

So it is important, to see which direction price breaks in an impulsive manner from a 'Squat bar'.  I also use the Delta Divergence indicator in a similar fashion to the 'Squat bar' and they work very well together.

I had done my pre-market and noted the supply and demand zones on my 5 min chart.  I was expecting an up move on the open and that is what we got, before price reversed quickly down and ending with a squat bar.  As soon as I saw it, I took a screenshot.  I was able to get a good long trade by using the 1 min chart to finesse my entry.

I have also added yesterday's 5 min chart to show where the better 'Squat bars' occurred.