QXO is turning into a well-known and hot commodity these days - with Brad Jacobs at the helm and a ton of cash at his disposal for future acquisitions.
We have seen a nice move in recent weeks off of the mitigation of HTF demand. We are now sitting at what I call a "Flip Zone" (grey box) - this is an area of liquidity that has intentionally been created in order for the controlling party to utilize it for future breakouts.
This flip zone, which has been in the making since June of this year, was rejected as recently as November.
Below, I highlight the 3-step process price needs to make in order to break out of our lower time frame liquidity building teal/blue and continue the uptrend toward new higher time frame highs.
Step 1: Break through the flip zone and subsequently our red stronger selling algorithm to test (and likely reject) off of our HTF supply zone - turning it into a flip zone.
Step 2: Retest our current flip zone, turning it into support and demand for future use.
Step 3: Break out of our HTF Supply/New Flip Zone and prove the sell-side of our teal/blue tapered algorithm.
Once we prove teal on the sell-side, as we did on the buy-side, we will have the opportunity to take an extremely confident long trade on the retest of one of our flip zones.
Although the momentum is building and we may be in extremely undervalued territory at the moment, do not forget that the market needs to go through the liquidity process in order to ensure an efficient and healthy HTF breakout. This takes time - but as long as you're following along with the story of the chart, you won't be eager for it to happen - you will accept the nature of the market and take advantage of opportunities that the story gives you.
Happy Trading :)
We have seen a nice move in recent weeks off of the mitigation of HTF demand. We are now sitting at what I call a "Flip Zone" (grey box) - this is an area of liquidity that has intentionally been created in order for the controlling party to utilize it for future breakouts.
This flip zone, which has been in the making since June of this year, was rejected as recently as November.
Below, I highlight the 3-step process price needs to make in order to break out of our lower time frame liquidity building teal/blue and continue the uptrend toward new higher time frame highs.
Step 1: Break through the flip zone and subsequently our red stronger selling algorithm to test (and likely reject) off of our HTF supply zone - turning it into a flip zone.
Step 2: Retest our current flip zone, turning it into support and demand for future use.
Step 3: Break out of our HTF Supply/New Flip Zone and prove the sell-side of our teal/blue tapered algorithm.
Once we prove teal on the sell-side, as we did on the buy-side, we will have the opportunity to take an extremely confident long trade on the retest of one of our flip zones.
Although the momentum is building and we may be in extremely undervalued territory at the moment, do not forget that the market needs to go through the liquidity process in order to ensure an efficient and healthy HTF breakout. This takes time - but as long as you're following along with the story of the chart, you won't be eager for it to happen - you will accept the nature of the market and take advantage of opportunities that the story gives you.
Happy Trading :)
Trade the Story
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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.
Trade the Story
Related publications
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.