Possible Bullflag / Falling Wedge / Bear-Trap / Liquidity Spring
Nasdaq is forming a bull-flag / falling wedge-type structure on the 4hr. Indicators are still firing bullish on 4 hr, but also mixed signals with the kijun-sen cross, which is bearish.
My guess is price will touch the bottom line of this wedge,
then briefly go back up to touch the 30 min POC @ 17545, then down to complete the wedge pattern, find the liquidity spring, then rebound to local highs. There will be some volatility when price touches the bottom end of the flag.
Could be a bear trap, when everyone thinks it will go down to the 4hr POC, but only goes to buy-side liquidity and then continues the macro bullish trend.
But could also dump straight down to 4hr POC @ 16973, because of the ichimoku cross, invalidating the bull-flag.
I have put scaled MNQ buy orders with a wide birth to let price breathe, aligning with the overall bullish trend.
If it dumps tomorrow, I expect an EOD bounce.
I have to work a day job, so I can't watch intra-day price action, but hopefully i can average in and catch a rebound.
My guess is price will touch the bottom line of this wedge,
then briefly go back up to touch the 30 min POC @ 17545, then down to complete the wedge pattern, find the liquidity spring, then rebound to local highs. There will be some volatility when price touches the bottom end of the flag.
Could be a bear trap, when everyone thinks it will go down to the 4hr POC, but only goes to buy-side liquidity and then continues the macro bullish trend.
But could also dump straight down to 4hr POC @ 16973, because of the ichimoku cross, invalidating the bull-flag.
I have put scaled MNQ buy orders with a wide birth to let price breathe, aligning with the overall bullish trend.
If it dumps tomorrow, I expect an EOD bounce.
I have to work a day job, so I can't watch intra-day price action, but hopefully i can average in and catch a rebound.
Comment:
Could also go like this, I doubt just straight down.
