a return to solid sellers with all signs scaring buyers = BUY

61
1-4 : higher high and higher lows , upward structure
according to dow theory
2 : entrance of sellers to test #1, very strong sellers with
little to no resistance, the uniformity and similarity
of these bars is suspicious and hints at external intervention,
to induce people to the downside.
3: out buyers enter, with the 2-3 downtrend I could see most
retailers not thinking any of this structure is meaningful,
on top of that probably having a stop above 2
4: we are pushed to the upside with strength, even creating
a gap, the stop orders above 2 got liquidated (ouch!) ,
one detail to note is that the buyers at #3 are now in control of the market,
they defeated the sellers at #2 by taking out their orders and
creating a new high, therefore the genesis of these buyers is considered
'solid', it is proven.
4-6 : a deceptive move as it seems to be a higher high which ,
woudl maybe make people think 5 is a solid low and stronger than the sellers at 4,
but if you draw a horizontal line, it simply is not the case.
7 : a return to the solid structure at 3, high volitlity which is good
as a confluence to the upside, because after high volitlity we
normally have a nice flow establish in the opposing direction

* what do I think will happen ?

* the candle at #7 is an attempt to scare off entrance to where major
players are entering, this is a great entry with a stop loss below #3 ,
likely this is where major market movers have their stop loss and they
will defend this area unless I am wrong.

* accumulation/distribution is giving us a hidden divergence , nothing
from mfi and rsi except oversold, which I do not trust in high volitlity / strong
moves.

* over the past 2,500 candles , price has reached the next orange zone if it closes out on one side
of the zone , you can manually verify by reducing the lookback period and counting, only realtime
tradeable bars / zones are counted in stats.

* in conclusion we want a buy order.

* we will expect the next leg up here, so reach for a tp at the zone above 6,
breaking even at the 6 high in case it's just a pullback.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.