So anyone that knows me, as a trader, knows I'm a big fan of Bill Williams and his "Profitunity" system. Trading Chaos. Williams Fractal. Awesome osci...Alligator...All that man. One of the parts of his system is Volume/MFI analysis. MFI can be thought of as....mpg of the market. Efficiency of capital. A high MFI indicates you're getting a long of bang for your buck, movement wise.
There are 4 types of candles essentially. Squat, Green, Fade and Fake. I'm not going to spend a lot of time here going through the 4 and what they mean, but when you see a Green candle, it's a runaway train, don't get in it's way....A squat is consolidation/compression....Lots of battle going on, but not much ground being gained (markets tend to turn on squats...more on this in a minute, as it's the premise of this entire post). Fades are exhaustion, market running out of steam.....And fakes are essentially "pit traders", or perhaps wash traders/market makers nowadays.
So markets tend to turn on squats. They're a giant tug of war between two sides. So when a squat's extreme gets violated, whichever way it may be, it's telling of the battle that just took place. A squat violated to the top indicating Bulls won. Bottom, Bears. Williams tested, successfully I'd say, the "Measuring Squat". A squat that's violated, clearly didn't turn the market...so where's it headed. Williams' theory is take the distance from the recent opposing swing (so the near bottom swing if PA is Bullish, nearest top if Bearish) and measure to the halfway point of the squat being measured. Project that distance from the halfway point of the squat being measured, and this is a likely target to aim for. If price creates another squat in the leg being measured, project that as well. You'll get clusters of projections that will likely dial in on a zone.
So this chart is basically 2019 thru present. 3 major legs. 3 measuring squats created, projected. 2 of the 3 successfully reached projected target. #1 overshot by quite a bit, but I'm willing to bet that a closer look on Weekly or Daily TF's could have given closer targets. #2 is a thing of ABSOLUTE F'N BEAUTY! I mean, near PERFECT target projection. #3, and that's what we all care about now....#3 is currently saying 14470.
I don't do predictions, or claim to know what the market will ever do. Just what it may do. What some historically probable things point to. And so long as the low of the squat isn't violated...This particular Monthly Measuring Squat is pointing toward upper 14k
As always, practice solid risk management. Good luck. Have fun.
There are 4 types of candles essentially. Squat, Green, Fade and Fake. I'm not going to spend a lot of time here going through the 4 and what they mean, but when you see a Green candle, it's a runaway train, don't get in it's way....A squat is consolidation/compression....Lots of battle going on, but not much ground being gained (markets tend to turn on squats...more on this in a minute, as it's the premise of this entire post). Fades are exhaustion, market running out of steam.....And fakes are essentially "pit traders", or perhaps wash traders/market makers nowadays.
So markets tend to turn on squats. They're a giant tug of war between two sides. So when a squat's extreme gets violated, whichever way it may be, it's telling of the battle that just took place. A squat violated to the top indicating Bulls won. Bottom, Bears. Williams tested, successfully I'd say, the "Measuring Squat". A squat that's violated, clearly didn't turn the market...so where's it headed. Williams' theory is take the distance from the recent opposing swing (so the near bottom swing if PA is Bullish, nearest top if Bearish) and measure to the halfway point of the squat being measured. Project that distance from the halfway point of the squat being measured, and this is a likely target to aim for. If price creates another squat in the leg being measured, project that as well. You'll get clusters of projections that will likely dial in on a zone.
So this chart is basically 2019 thru present. 3 major legs. 3 measuring squats created, projected. 2 of the 3 successfully reached projected target. #1 overshot by quite a bit, but I'm willing to bet that a closer look on Weekly or Daily TF's could have given closer targets. #2 is a thing of ABSOLUTE F'N BEAUTY! I mean, near PERFECT target projection. #3, and that's what we all care about now....#3 is currently saying 14470.
I don't do predictions, or claim to know what the market will ever do. Just what it may do. What some historically probable things point to. And so long as the low of the squat isn't violated...This particular Monthly Measuring Squat is pointing toward upper 14k
As always, practice solid risk management. Good luck. Have fun.