No trades at the moment - WAIT AND SEE
Hi Team,
We have entered a small trading zone at previous high which is expected as profit taking is occurring.
Looking at the previous top will give us some clues. The FEB top was a quick distribution into a shakeout creating the liquidity for larger players to enter. Remember - distribution are generally quick and volatile whereas accumulation are slow with and time consuming with decreasing volatility.
I have listed two scenarios here with neither more viable at this stage. I think overall we go higher after the prolonged re-accumulation we just had.
Confirmations of bullish behaviour:
*Supportive price at lower part of TR
*Decreasing volatility
*Relative long time in range
*Testing event at support with strong recovery and subsequent support in the TR
*Successful break of resistance with volume and support above resistance line
Confirmations of bearish
*Break down to 55K with no recovery in the TR
*No support volume on the break to 55K
*A break below support - retest to previous support and rejection
*Quick time in range like in FEB
Its wait and see at the moment.
Remember you are looking to confirm bias which indicates who is winning; buyers or sellers. At the moment the short term bias is up; so we are looking to confirm each step. If we have a deviation from what we would see in a bullish bias it should alert us as a potential change in market conditions and we can begin to craft a trade in that direction.
We have entered a small trading zone at previous high which is expected as profit taking is occurring.
Looking at the previous top will give us some clues. The FEB top was a quick distribution into a shakeout creating the liquidity for larger players to enter. Remember - distribution are generally quick and volatile whereas accumulation are slow with and time consuming with decreasing volatility.
I have listed two scenarios here with neither more viable at this stage. I think overall we go higher after the prolonged re-accumulation we just had.
Confirmations of bullish behaviour:
*Supportive price at lower part of TR
*Decreasing volatility
*Relative long time in range
*Testing event at support with strong recovery and subsequent support in the TR
*Successful break of resistance with volume and support above resistance line
Confirmations of bearish
*Break down to 55K with no recovery in the TR
*No support volume on the break to 55K
*A break below support - retest to previous support and rejection
*Quick time in range like in FEB
Its wait and see at the moment.
Remember you are looking to confirm bias which indicates who is winning; buyers or sellers. At the moment the short term bias is up; so we are looking to confirm each step. If we have a deviation from what we would see in a bullish bias it should alert us as a potential change in market conditions and we can begin to craft a trade in that direction.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.