1. strong sellers get countered by the entrance
of buyers pushing us up for a pullback.
2. price continues downward, after reaching the
previous support of 1, it seems sellers have the
upper hand and push us down, the strong red wick
being evidence of selling power and making this
a 'switch' , from being a support to resistance
3. a retest of the resistance, our sellers still seem to
be interested
what do I think will happen ?
* the obvious move is to take the trade to the downside,
using logic we can assume here that the sellers are
cementing power here, and we know that there is
a large volume of interest here, giving us a good stop
behind that.
* over the past 2,500 bars, using the free chaos theory indicator zones, when price has closed below
a zone, 67% of the time it follows to the next area, with this in mind
we can with more than random chance certainty predict a small move down
if we clear the next zone below, we can break even and aim further down.
* we have a hidden divergence on RSI+MFI+ACC/DIST
* we have oversold on MFI and RSI which I will take into account as the volitlity is normal relative to nearby structure.
of buyers pushing us up for a pullback.
2. price continues downward, after reaching the
previous support of 1, it seems sellers have the
upper hand and push us down, the strong red wick
being evidence of selling power and making this
a 'switch' , from being a support to resistance
3. a retest of the resistance, our sellers still seem to
be interested
what do I think will happen ?
* the obvious move is to take the trade to the downside,
using logic we can assume here that the sellers are
cementing power here, and we know that there is
a large volume of interest here, giving us a good stop
behind that.
* over the past 2,500 bars, using the free chaos theory indicator zones, when price has closed below
a zone, 67% of the time it follows to the next area, with this in mind
we can with more than random chance certainty predict a small move down
if we clear the next zone below, we can break even and aim further down.
* we have a hidden divergence on RSI+MFI+ACC/DIST
* we have oversold on MFI and RSI which I will take into account as the volitlity is normal relative to nearby structure.
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Join our public discord : discord.gg/hUUhRKByFt
To access my premium indicators , including unrestricted usage of public indicators ( all timeframes ) : whop.com/chaos-theory-indicator-s-5/?store=true
To access my premium indicators , including unrestricted usage of public indicators ( all timeframes ) : whop.com/chaos-theory-indicator-s-5/?store=true
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.