US30 Closing first red day on the NFP dayHello traders and thanks for reading and supporting my idea!
US30 is actually building an interesting template and today it could complete a weekly pump and dump template. But to understand better the logic behind this template, let's analyse day by day what happened this week.
Monday, sets up the opening range of the week, the high low of the week is now in place and overall it was a dumping day as you can see during NY session time.
Tuesday expanded the range to the downside, closing back inside the range at the end of the day. That's our box of the week, money are lying above and below these extremes.
Wednesday nothing really interesting happened, considering that the price stayed inside the range almost all the day, slightly retesting the HOW just before the end of the day, closing the day in breakout, which is very important because now, breakout traders long are in the market and potentially driving this move.
Thursday consolidated almost all the day up high into the HOW, every attempt to break higher failed, eventually trapping the traders long in the wrong direction, stopping them out at the end of the day, closing the market as first red day and with breakout short traders involved.
Today, Friday, I can see the market placing a lower low into the low of day, which potentially reinforce the weakness of this market, and it's currently consolidating/coiling just below the closing price.
Overall, we are inside the previous weekly high low range, so I will be targeting the current LOW if the short scenario is identified.
As always, the template can give a thesis but a setup can drive the move, the following notes will explain better both the scenarios.
Gianni
