Rebid is when price is in an area of prior aggressive buy activity and finds the buyers again. Reoffer is when price is in an area of prior aggressive sell activity and finds the sellers again. Rebids and Reoffers give you access to momentum trades from the middle out, trades from the edges back to the middle, and opportunities to add to current positions. These are actionable events that we can look for across all time frames.

Identifying Rebid and Reoffer Opportunities

We are looking for areas of acceleration or aggressive, one-way auction activity. We are then looking for price to retrace back in the direction the activity started and for the same players to step back in.

Here are characteristics we want to see when looking out for that aggressive one-way activity:

• Widening candles

• Acceleration of price velocity

• Increased volume

• Increasing delta gradient (signs of aggression)

Once these characteristics are observed, we need to decide where we anticipate the aggressive players to refresh. This is going to be a function of the structure in the area the activity started and the depth of the pullback we anticipate.

The structure may consist of the swing it started from, short time frame inflections, or other market generated information. Once we have picked our spot we will observe for responsive activity in that area and manage risk against it. This allows us to get on board with the primary direction of the move.

Depth of Pullback

There is a discretionary element of identifying the highest probability area to engage. We must ask ourselves: how far do we think price will pullback before those players step back in? We can gain valuable information which helps make that prediction depending on the characteristics of the aggressive activity.

Generally, there is an inverse relationship between the length and violence of the move and depth of the pullback. Larger and more violent moves have shallow pullbacks, shorter and less violent moves have deeper pullbacks.

To put this in context consider why we want to see rebidding or reoffering. We are positioning with the idea that the impulsive move we just observed will refresh and continue further. If a large and violent impulsive move continues, those players should aggressively follow through on their activity which results in a shallow retracement. When particularly large and violent moves have a deep pullback they are more likely to be reversals or stop runs of the prior swing high or low.

Conversely, we will look for a deeper retracement on shorter less violent impulse moves. The lack of aggression can be a sign that we may have some two-way auction activity filling out volume. Essentially putting in a balanced distribution that you can lean long against at the lows or short against at the highs.

“Leo, this is just buying and selling pullbacks?”

Yes, but it’s simple to say that but this is a framework to govern what that means.

Examples

Large down move , reoffering on each pullback and our larger zone is illustrated below , the OFL tools are automatically drawing the larger reoffer zone

Rebid area from large leg up (notice the smaller rebidding on the primary leg up)