Although I primarily trade US securities, I've recently been educating myself on the importance of looking into different markets and seeing how their sentiment flows into the US trading time periods. I focus more on London trading right now as I have limited time and London trading overlaps into the US trading period.
* So, in summary, I've recently begun to understand how the combined liquidity of both the London and US traders results in very volatile opening periods in the US market.
So, from what I can observe, in the graphs, It's evident on the daily graphs that there are bearish signals all around; this can be identified in the candles that occurred early August 2021 until today (14th September 2021). There is a bearish confirmation in the peaks and in the troughs which would suggest that after a brief pump in the upwards direction there will be more bearish momentum in the coming trading days.
* My intuition on how this will play out is, the price action may jump up towards the 20 periods EMA or if it is fortunate enough, it will reach the red horizontal line which I will refer to as the choke point. From there, the bearish momentum will continue, until where is a little more uncertain but there is reason to believe that it may push down roughly towards my blue horizontal line; from there more information from the price action may be required to determine where it may go next.
IMO, I think that the current trend is weak and many are sitting on the sidelines awaiting fundamental information before re-entering big positions. This is understandable as we are in a post-pandemic environment. A correction or a decent pullback is expected, a massive crash requires a lot more indicators to determine.
I may be wrong in all of this but, that is my opinion and I'd be more than welcome to explore differing ideas.
As to how this is relevant to the US markets? I think that should pessimism take over the UK markets, it may reduce the liquidity and trading that occurs in the US markets; making bearish movements more likely as investors and traders shift their money elsewhere or sit and wait for a discount. As a result, this may amplify the bearish appearance that is evident in the US markets.
Thanks for reading and I hope you are all successful with your analysis and trades. :)
* So, in summary, I've recently begun to understand how the combined liquidity of both the London and US traders results in very volatile opening periods in the US market.
So, from what I can observe, in the graphs, It's evident on the daily graphs that there are bearish signals all around; this can be identified in the candles that occurred early August 2021 until today (14th September 2021). There is a bearish confirmation in the peaks and in the troughs which would suggest that after a brief pump in the upwards direction there will be more bearish momentum in the coming trading days.
* My intuition on how this will play out is, the price action may jump up towards the 20 periods EMA or if it is fortunate enough, it will reach the red horizontal line which I will refer to as the choke point. From there, the bearish momentum will continue, until where is a little more uncertain but there is reason to believe that it may push down roughly towards my blue horizontal line; from there more information from the price action may be required to determine where it may go next.
IMO, I think that the current trend is weak and many are sitting on the sidelines awaiting fundamental information before re-entering big positions. This is understandable as we are in a post-pandemic environment. A correction or a decent pullback is expected, a massive crash requires a lot more indicators to determine.
I may be wrong in all of this but, that is my opinion and I'd be more than welcome to explore differing ideas.
As to how this is relevant to the US markets? I think that should pessimism take over the UK markets, it may reduce the liquidity and trading that occurs in the US markets; making bearish movements more likely as investors and traders shift their money elsewhere or sit and wait for a discount. As a result, this may amplify the bearish appearance that is evident in the US markets.
Thanks for reading and I hope you are all successful with your analysis and trades. :)