Scene of the crime

You may have heard traders talk about the scene of the crime or SOC. This is an area of the chart where price has moved up or down very quick for an above average range from the previous price. This could have been a movement out of a consolidation zone or a news based event.

When these moves happen, it is expected that the price will return to the start of that move to see if the buyers or sellers of that move still exist.

This chart is a picture of the 15 minute S&P 500 emini futures (ES). There was a selloff because of news out of China of a virus outbreak. Where that selloff occurred is a price a trader should have noted on their chart with the expectation that price would return to that level. In this case, price did return to that level on the chart. I have labeled that the return.

Price made it back to the Scene of the Crime

Sceneofthecrime.jpg

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