We moved away from previous 2-day balance (medium yellow box) at overnight and bounced back and forth previous demand zone at cash session, so it lost it's strenght. Removed it from the chart then included longer time frame value low in purple at 138'26. We can see that market has been rejecting value higher so far (tails and bottoming shown by red arrows) but as long as we stay between purple line and last big supply at 139'08 there's no definition of higher TF trend. Possible moves for next days are drawn in red and green.
Scenario 1:
We could play between these zones, for sure, as seen in blue line. it's a big range for day trading. There's a low volume area at the cumulative volume profile (right) just above previous day value area (smaller yellow box). If overnight keeps balancing a little higher than that and we get a extension lower at cash open, could be a risky long for continuation at 138'30'5/31. Target at 139'07/08.
Scenario 2:
139'08 could be a short play if it gets the same bounce from overnight first. However I'm shifting to long if it breaks since it's LIS for initiative move lower
Scenario 3: Market returns to previous day's value. Won't do anything. However, since market kept building volume towards purple line, this became my LIS for shifting from neutral to short. Will wait for it to break then sell pullbacks, target at 138'16, supply zone near bottom of macro value from couple months now.
I got shaken out ZB as you can see from my other idea but I'm still long at 27'5 in ZN so I'm hoping we get at least scenario 1 or 2 so I can get out hahaha
Scenario 1:
We could play between these zones, for sure, as seen in blue line. it's a big range for day trading. There's a low volume area at the cumulative volume profile (right) just above previous day value area (smaller yellow box). If overnight keeps balancing a little higher than that and we get a extension lower at cash open, could be a risky long for continuation at 138'30'5/31. Target at 139'07/08.
Scenario 2:
139'08 could be a short play if it gets the same bounce from overnight first. However I'm shifting to long if it breaks since it's LIS for initiative move lower
Scenario 3: Market returns to previous day's value. Won't do anything. However, since market kept building volume towards purple line, this became my LIS for shifting from neutral to short. Will wait for it to break then sell pullbacks, target at 138'16, supply zone near bottom of macro value from couple months now.
I got shaken out ZB as you can see from my other idea but I'm still long at 27'5 in ZN so I'm hoping we get at least scenario 1 or 2 so I can get out hahaha
Scenario 3 was very likely at the open because of europe but it quickly shifted back into value. You could see purple line acting as LIS both from down and upside. Could go for a value play once you see purple line cross happening with volume at the tape or seek for pullbacks to play scenario 1