Today’s session offered a clean short opportunity as price rejected an overlapping VWAP resistance zone. Buying interest faded into the resistance, with Dry Volume and seller participation exceeding buyer participation (S > B), showing that buyers were losing control.
The inability to hold above VWAP confirmed seller strength, and the 10:20 candle close provided the confirmation for a high-probability short entry. The move lower that followed rewarded traders who waited for participation to confirm the rejection instead of anticipating it.
Key Learnings
- Volume Rhythm: Dry Volume showed weakening buyer participation near resistance.
- Buyer vs Seller Participation: S > B confirmed sellers had taken control.
- VWAP Rejection: The overlapping VWAP zone acted as strong resistance.
- Closing Confirmation: The 10:20 candle close confirmed the bearish setup before the decline.
