Structure is bearish as mentioned. A trend that is retraced back into its progression that force price into a extended trading range is a sign of a reversal not continuation!. As the extend of the range is where volume is added to shift the market.. correction ranges are signs of continuation and they are brief..
The market is currently ranging at resistance which is a bullish behavior and descending. Yet it’s making a old school diamond top which is a bearish reversal pattern. Furthermore with a doji wick marking the high in the pattern. Inside of a 3 point reversal pattern I doubt any bullish move will trend far as the weekly rsi has a m pattern in overbrought, the monthly is in overbrought as the pair printed several bull months with no sale off. Thus we had a monthly fill in candle, followed by a . It’s hard not to see this month as bearish Also ideally one want to see strong aggression off of the mvwap when it’s used as support. Here we have 3 touches with no net high made making it hard to be bullish as well . Any breakout should be look to short as that’s the highest probable outcome( key word PROBABLE) the more aggressive the more confirmation that is at this current state.....
as we have several days of inside bar in which I see them as a reversal candlestick than continuation within the structure of the diamond... I’m expecting a breakout by Friday
Gl ✌🏾
The market is currently ranging at resistance which is a bullish behavior and descending. Yet it’s making a old school diamond top which is a bearish reversal pattern. Furthermore with a doji wick marking the high in the pattern. Inside of a 3 point reversal pattern I doubt any bullish move will trend far as the weekly rsi has a m pattern in overbrought, the monthly is in overbrought as the pair printed several bull months with no sale off. Thus we had a monthly fill in candle, followed by a . It’s hard not to see this month as bearish Also ideally one want to see strong aggression off of the mvwap when it’s used as support. Here we have 3 touches with no net high made making it hard to be bullish as well . Any breakout should be look to short as that’s the highest probable outcome( key word PROBABLE) the more aggressive the more confirmation that is at this current state.....
as we have several days of inside bar in which I see them as a reversal candlestick than continuation within the structure of the diamond... I’m expecting a breakout by Friday
Gl ✌🏾
Comment:
Followed by a monthly spinning top....
