I am not Market Maker Expert but here is what I believe may be occurring:
Any counter thoughts or insight into how you believe market makers to think is appreciated as this is something I am adding to my trading and welcome all knowledge.
1) A clear H&S was formed and now is forming a second part but a lot of people went short on the original breakout (me included but my SL is 8200 so has not been stopped out)
2) Shorts piled in and some got stopped out by the impulse move back to the right shoulder if you didn't have your stop above the shoulder. This also gave longs a reason to jump on as it seemed like a very bullish move up.
3) Use this order block to clean out shorts and spot sells so that the book becomes very thin at this level.
4) Dump down to 7.5k and actually complete the H&S and liquidate some late longs.
5) Gaining shorts on the dump as the herd will pile on the with the direction of the market.
6) Use those newly gained shorts as fuel for the leg up to break the 8.2k long-term downtrend with volume having the ability to blitz through this 8k region now that the order book has been cleaned out.
As a side I have been short from 8100 and 7900 and have been expecting a retest of 7500 for the last few days but I am trying to remain unbiased. I also believe the 8.2k wall will be broken after to reach 9.2k and ultimately 11.6k again. I feel the books need cleared to get there and all the momentum indicators need a bit of a reset as well to get a real impulse move up.
All thoughts welcome!
Any counter thoughts or insight into how you believe market makers to think is appreciated as this is something I am adding to my trading and welcome all knowledge.
1) A clear H&S was formed and now is forming a second part but a lot of people went short on the original breakout (me included but my SL is 8200 so has not been stopped out)
2) Shorts piled in and some got stopped out by the impulse move back to the right shoulder if you didn't have your stop above the shoulder. This also gave longs a reason to jump on as it seemed like a very bullish move up.
3) Use this order block to clean out shorts and spot sells so that the book becomes very thin at this level.
4) Dump down to 7.5k and actually complete the H&S and liquidate some late longs.
5) Gaining shorts on the dump as the herd will pile on the with the direction of the market.
6) Use those newly gained shorts as fuel for the leg up to break the 8.2k long-term downtrend with volume having the ability to blitz through this 8k region now that the order book has been cleaned out.
As a side I have been short from 8100 and 7900 and have been expecting a retest of 7500 for the last few days but I am trying to remain unbiased. I also believe the 8.2k wall will be broken after to reach 9.2k and ultimately 11.6k again. I feel the books need cleared to get there and all the momentum indicators need a bit of a reset as well to get a real impulse move up.
All thoughts welcome!