The updated chart with minor and major levels to watch applicable for day trading. The price continues to be resilient and the buyers maintain the control. The channel was broken OVN and that encouraged the sellers at the RTH opening. However, the sellers failed to take out 2561 level and the buyers stepped in ahead of the OVN low. The shorts got squeezed again and that set the day’s bias. The broken channel bottom was tested twice and provided a tradeable reaction. The market is looking for a catalyst to break the recent balance. The dovish Feds news is getting old. One thing was interesting to observe how the algos reacted during Feds chair conference. It was amazing to watch the price action. The minute he said about continuing to unload their balance sheet - a strong downside move. The price normal flow gets interrupted by such remarks. Nevertheless, the bulls reclaimed their positions after that. At this point the market is building energy at the upper edge of the recent balance. That fact is increasing odds for the upside breakout. Today’s low is important level for the bulls and losing it may shift a short term bias to the sell side.
Comment
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The bulls managed to break the recent balance and made a marginal high into the closing. Sneaky though. Nothing wrong with that the price action and market structure supported that. The intend is to finish the week in green.
Agree with your bias. Looking at this chart reminds me of my kids transformer toy! It can be anything you want it to be.. For now, a failure here could target 46 and of course lower.
CodedFlow
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short ? :)
SviCapital
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@LoLBeach, you need to love the market not to fight :) longs and shorts work as long as the price stays in the balance. The level are defined to determine where the control shifts.
CodedFlow
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@SviCapital, i love the markets :) the most realistic instrument we have invented ! :) i do not fig them :) i hope is clear. still... what is the direction of this trade ? :)
SviCapital
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@LoLBeach, if you are a swing trader and looking to get in then wait for a pullback to the balance edge bottom. Shorting this market is for day traders. I had 2 longs and 1 short today. I don’t keep opened positions overnight. I think that upside reward for the longs, if you are a swing trader, is getting smaller. 2622 level could attract bigger sellers.
CodedFlow
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@SviCapital, i usually trade for 2 days to few weeks per position... if failing i pull out second day... HFT is working for you well ? (i hope so ... is really hard to time the markets)
SviCapital
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@LoLBeach, day trading is usually more rewarding, however, it is the most complicated way of trading. After all, as long as your reward 2-3 times higher your risk the edge is there.
SviCapital
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@SviCapital, a good short may have a chance to work if a failed breakout from a recent balance is observed. That may lead to a down trend day.
CodedFlow
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@SviCapital, i see broken patterns on daily and 4H. and yes day trading requires more focus and analysis (sometimes i am not always up to it in terms in patience)... other than that I am usually right :)