SviCapital

It is said that every chart looks great hindsight. The support and resistance levels on this chart were defined awhile ago. You can see how the price moves between those areas. Whatever the news coming via the wires the price respects the market structure and behaves accordingly. On Friday, the price broke the support decisively which led to a liquidation move to...

The market did absolutely nothing today from perspective of the recent balance resolution. This is a sign of a holding pattern. Perhaps, tomorrow’s Feds chairman speech is something the participants are waiting. Nevertheless, both short and long opportunities were available during the day session. Luckily, the volatility stays. Watch the recent balance edges. A...

As I mentioned in the yesterday’s post the buyers might be active ahead of the support. It happened overnight and by the day time session opening the market was already stretched to upside. At this point the market is grinding up to the next resistance and the last week highs retest is on the way. The momentum indicators are showing negative divergence though....

Not a surprising action in today’s session. A pullback was triggered in premarket and offered a short opportunity. Overbought conditions added the odds. A long opportunity was available as well in the morning session. Considering the recent bullish sentiment the buyers were constantly interrupting the correction process by attempting to turn the table. This is an...

A trending up session despite the flashing overbought conditions. Both short and long opportunities were available. The market made to the next resistance level. One need to remain cautiously bullish. A break down of the trend line with an impulse would be a bad sign for the bulls that may lead to a liquidation move. The negative divergence on RSI is a warning...

The buyers regained the short term control and trended up back to resistance. The session ended up at the inflection point. A few warning signs though: - RSI flashing overbought condition. - Steep trend line. Usually, such compression may not sustain. Need to see a decisive break to either direction. Or Fake out which would be ideal for shorting. The zero...

A complete reversal of yesterday's parabolic move. This is a zero sum game: both bulls and bears make money. The market is for active traders who can read it. Use trend lines and support/resistance levels to understand where the action is and who gets a short term control. As I mentioned in my previous posts the Algos are trend following and session oriented...

A confluence of high value node and 61.8% retracement and a China news sparked a parabolic move to upside. This is typical for Algos rushing to get on board. If a trader did not catch the move it is better to wait and see where the price gets exhausted and forms a fake out. It is easy to spot on lower timeframes. Knowing that shorting is risky against such a...

A day session spent most of the time balancing right at the support and eventually broke the support during the afternoon session. Whether it is a short term weakness or the beginning of a bigger correction remains to be seen. The broken support is now resistance and retest of lower supports shown on the charts is expected. If the market somehow manages to go back...

Friday's action has confirmed the validity of the recent balance breakout. A news driven downside move retested the important support, the recent balance breakout area, and found responsive buyers. Another news driven move helped to move away from that area. Despite the noise created by news the market structure remains intact and watching the right timeframe...

A trend up day across the board. A break of the balance is what creates such market conditions. Traditional indicators only confuse the traders and trap them on the wrong side. The indicators help to see a potential reverse but they don't provide a signal. Only price action and rejections of certain levels are the truth tellers. The Algos are trend following...

An oversold market found responsive buyers. The price has channeled the entire session. A news driven momentum change is a typical reaction seen in the world of Algos. Short and long entries are available for day traders. When volatility spikes it makes sense to wait for conservative locations to allow smaller risk. The market closed at a resistance level. There...

On Friday the market continued to drift down and eventually found a short term floor. Several opportunities on short and long side were available. The current structure and positive divergences are increasing the odds of a bounce. One need to be on a lookout to play it. I believe that both short and long opportunities would be available. I'm not in a business to...

An unusual day on the market. A large range swings offered multiple opportunities. One does not need to catch all of them in order to be profitable. The overnight session was trending up and provided a hint that the buyers are active taking advantage of the oversold condition. The day session started from a strong momentum to upside slicing through multiple...

Post FOMC reaction led to a liquidation move to July’s opening 7780 where oversold and exhausted market offered a long opportunity for bulls. Once I noticed the reverse I even doubled my position to ride the wave up. Today’s action has not changed the neutral bias of the market. The next few days would be telling. The initial reaction sparked by Algos is not...

Yesterday, I outlined that the price may retest the lower band of the Bollinger Bands and that won't change the bias. In the overnight session the sellers brought the price to that level offering the RTH buyers a long opportunity right from the getgo. A push back to the middle of the bands was a reasonable reaction. The remaining session was choppy awaiting for...

Break of the channel in pre-market set the morning session bias. Feels like a dejavu. If you look left you see a similar pattern in play. The market is not conducive to a big move. This week is full of events and that what makes that action. The bias remains neutral. The price is in the middle of Bollinger Bands. If we see some selling pressure the lower band...

Yesterday's momentum into the closing dominated today's session. The price channeled up and got close to ATH. Not much has changed to infer what the market is heading. It may stay within the new balance for awhile and consolidate before the next move. Watch for the channel break up or breakdown to get a clue. Next week could be telling. 07/26/2019