NAS100 is currently in a squeeze-high zone on the hourly timeframe, which often signals a potential sharp move down, especially with upcoming Fed news. This squeeze-high pattern typically represents an accumulation phase before smart money decides to make a significant move. In this case, it indicates that enough traders are trapped on the buy side, suggesting a possible sell-off when liquidity is collected.
Explanation (for your deeper understanding):
Squeeze High: When price pushes above recent highs but fails to continue, trapping breakout buyers.
Accumulation before a move: Institutions often build positions during such squeezes — they push prices to gather liquidity from retail traders before reversing.
Smart Money Behavior: If most liquidity remains above previous highs, a push into that area followed by rejection typically indicates that institutions are filling sell orders.
Fed News Impact: High-impact events like Fed announcements often provide the volatility needed for smart money to trigger these reversals.
Explanation (for your deeper understanding):
Squeeze High: When price pushes above recent highs but fails to continue, trapping breakout buyers.
Accumulation before a move: Institutions often build positions during such squeezes — they push prices to gather liquidity from retail traders before reversing.
Smart Money Behavior: If most liquidity remains above previous highs, a push into that area followed by rejection typically indicates that institutions are filling sell orders.
Fed News Impact: High-impact events like Fed announcements often provide the volatility needed for smart money to trigger these reversals.
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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.
Roop Trading Academy
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.
