high volatility inside a potential reversal range will shake out many market participants, often testing both bears and bulls. Both sides have been tested multiple times with fakeouts on both sides (upthrust in Phase B and spring in Phase C).
Volume supports this idea as we experience volatility in early Phase A and Phase B, with contraction occuring in Phase C and expansion in Phase D. Volume is increasing in this phase on positive movement, and contracting on retracements to show lack of sell pressure (absorption of supply).
There's a DCA element here that i think is important to this trade, because we often do not know how deep the test is when we complete our backup. Using the 200 EMA &MA to represent the creek (as dynamic resistance), we have horizontal levels that suggest confluence for this level.
Invalidation is a close below this level on the 4hr. Stop placement can be tight right below range high, or wide below ~2670.
Will update with targets as they are much higher and are not shown on this TF
Volume supports this idea as we experience volatility in early Phase A and Phase B, with contraction occuring in Phase C and expansion in Phase D. Volume is increasing in this phase on positive movement, and contracting on retracements to show lack of sell pressure (absorption of supply).
There's a DCA element here that i think is important to this trade, because we often do not know how deep the test is when we complete our backup. Using the 200 EMA &MA to represent the creek (as dynamic resistance), we have horizontal levels that suggest confluence for this level.
Invalidation is a close below this level on the 4hr. Stop placement can be tight right below range high, or wide below ~2670.
Will update with targets as they are much higher and are not shown on this TF