The overnight gap up on $SPYThe majority of the move in AMEX:SPY since 1993 has been in the overnight session.
In a trending bull market, and making new highs, this gap trade becomes more common.
But it doesn’t happen every day
We bought the close on Friday, looking to close out early near the open on Monday
Theres countless papers on this edge, heres one about the overnight drift
papers.ssrn.com
Economic Cycles
Cable (GBPUSD) heading for 1.3800, FED rate Hike Priced In I believe the FED rate cuts are largely being priced in. We are now moving to that liquidity event level that was as a result of Russian sanctions and some liquidity being sucked out of the system. I expect Cable to move up to the 1.3800 level first and then possibly 1.4000.
1. You can see the Volume come in after the FED cut. That's some of the earlier longs liquidating on the higher volume trading those events.
2. You can see from the volume that the trade started from October last year and picked additional pace in April this year. So if you are trading the upside now you missed out on most of the earlier move.
3. The key now is to wait for sellers or develop a bullish bias in intraday traders if you are a day trader. You can follow more of my thoughts as a 15 year trading veteran in London
Is Kaspa ($KAS) About to Repeat History?Is Kaspa ( CRYPTOCAP:KAS ) About to Repeat History?
Looking at Kaspa’s price action, we are approaching a key bottom based on its power law model. Historically, Kaspa has followed its own unique cycles, with the -50% deviation from the power law providing ultimate buy opportunities. These moments are rare, and we are currently hovering around that critical zone, signaling a potentially high reward entry point.
While past cycles weren’t always perfectly aligned, the bottom signals have consistently been amazing buy zones. If Kaspa continues to follow its power law trend, this could be a golden opportunity for those looking to enter at a strategic price.
Does the news even matter, or should we simply wait for Kaspa to grow in USD value over time?
With Kaspa’s cyclical nature, it seems that patience could pay off massively. The power law has proven to be a reliable guide so far, and right now, we may be witnessing another rare buying window.
Key Points:
Approaching a -50% deviation from Kaspa’s power law: Historically rare and highly profitable
buy zone.
Kaspa follows its own cycles, and we may be at another cyclical bottom.
The risk-to-reward ratio in this area could be massive if history repeats itself.
What do you think—will Kaspa follow its power law and surge, or are we in for a new pattern?
📉💥 Ultimate buying opportunity?
#Kaspa #KAS #Crypto #PowerLaw #Cycles
Platinum: Little Consolidation (Wave 4); Golden RatioWe can see a very well defined cycle, and wave 1 to 3 already created.
This new cycle could be a consolidation, the price can drop to 14,6% or 23,6% level.
Or even in the middle between 38,2% and 23,6%, where other wicks has already touched, creating a support, where can also occur the last candle of Wave 4.
Open interest in NYMEX:PL1! is falling and the major trend rising, it can occur a reverse, and this reverse will be the Wave 4.
RSI left the Overbought level, followed by a failure swing, resulting in continued decline of the indicator.
After the peak $1,016.45, ADX is losing strength while DMI+ has a high probability of changing position with DMI-.
Soon we enter into the next bullrun facemelt, be readythe last times we broke the negative trend on the rsi on the weekly btc facemelted up, I could see a case where we have one more dip to create a very large inverse head and shoulders on the daily, but usually you don't get another chance to buy the lows, and since september is coming to an end and there is rate cuts from the usa and china.... :)
Potential trade setup on EURUSDWe are looking at a long trade on EURUSD based on the stretch strategy. The trade is aligned in trend with his higher timeframes and has taken out the upper stretch as shown in the diagram. We will exit the trade once range has been acheived.
Trader Order Details:
EURUSD(Long)
E - 1.1195
SL - 1.1176
T - 1.1227
We will be tracking this move and updating the post as we go along on the charts and on video. Keep a look out for it traders.
What is Structure Mapping in Gold Trading XAUUSD?
Structure mapping is essential for day trading, scalping and swing trading gold.
It is applied for trend analysis, pattern recognition, reversal and trend-following trading.
In this article, I will teach you how to execute structure mapping on Gold chart and how to apply that for making accurate predictions and forecasts.
Take notes and let's get started.
Let's discuss first, what is structure mapping?
With structure mapping, we perceive the price chart as the set of impulse and retracement legs.
Structure mapping can be executed on any time frame and on any financial market.
Look at a Gold chart on a 4H time frame. What I did, I underlined significant price movements.
Each point where every leg of a movement completes will have a specific name and meaning.
On a gold chart, I underlined all such points.
These points are very important because it determines the market trend and show the patterns.
When you execute structure mapping, the first thing that you should start with the identification of a starting point - the initial point of analysis.
On a price chart, such a point should be the highest high that you see or the lowest low.
If you start structure mapping with a high, that high will be called Initial High.
A completion point of a bearish movement from the Initial High will be called Lower Low LL.
A bullish movement that completes BELOW the level of the Initial High or Any Other High will be called Lower High LH.
A bullish movement that completes on the level of the Initial High or Any Other High will be called Equal High.
A bullish movement that completes above the level of the Initial High or Any Other High will be called Higher High HH.
If you start with the low, such point will be called Initial Low.
A completion point of a bullish movement from the Initial Low will be called Higher High HH.
A bearish movement that completes ABOVE the level of the Initial Low or Any Other Low will be called Higher Low HL.
A bearish movement that completes on the level of the Initial Low or Any Other Low will be called Equal Low.
A bearish movement that completes below the level of the Initial Low or Any Other Low will be called Lower Low LL.
Look how I executed structure mapping on Gold chart.
Starting with the lowest low, I underlined all significant price movements and its lows and highs.
You should learn to recognize these points because it is the foundation of gold structure mapping.
Combinations of these points will be applied for the identification of the market trend, trend reversal and patterns.
According to the rules, 2 lower lows and a lower high between them are enough to confirm that the market is trading in a bearish trend.
While 2 higher highs and a higher low between them confirm that the trend is bullish .
In a bullish trend, a bullish violation of the level of the last Higher High will be called a Break of Structure BoS. That event signifies the strength of the buyers and a bullish trend continuation.
A bearish violation of the level of the last Higher Low will be called Change of Character CHoCH . It will mean the violation of a current bullish trend.
In a bearish trend, a bearish violation of the level of the last Lower Low will be called a Break of Structure BoS . It is an important event that signifies the strength of the sellers and a bearish trend continuation.
While a bullish violation of the level of the last lower high will be called Change of Character CHoCH. That even will signify a violation of a bearish trend.
That's how a complete structure mapping should look on Gold chart.
With the identification of the legs of the move, highs and lows, BoS and ChoCh you can clearly understand what is happening with the market.
Gold was trading in a bearish trend. Once the level of our Initial Low was tested, the market started a correctional movement and started to trade in a bullish trend.
Once some important resistance was reached, the market reversed. We saw a confirmed CHoCH and the market returned to a bearish trend.
Structure mapping is the foundation of technical analysis. It is the basis of various trading strategies and trading styles. It is the first thing that you should start your trading education with.
I hope that my guide helped you to understand how to execute structure mapping in Gold trading.
❤️Please, support my work with like, thank you!❤️
Dark Pool Buy Zone Stages More Gap Up PotentialNYSE:NKE gapped again with a breakaway gap jumping over resistance. These rarely fill and if the gap fills, it will be minimal. Volume was above average. This kind of gap up sequence can happen easily when a classic Shift of Sentiment pattern forms in Accumulation/Distribution indicators as a stock bottoms. But price remains well below the previous gap down. It may gap again as the stock challenges that resistance.
SOYBEANS - Are We Close to a Major Bottom? Cycles Say YES.Here is what I am currently watching for SOYBEANS.
-We need to be aware that there is a major bullish divergence setup (not trigger) developing on the quarterly & monthly charts. We need to pay close attention to this setup, because if triggered/confirmed, it implies a massive move up for Soybeans would be on the horizon.
-Interestingly, the Weekly chart has confirmed bullish divergence. The first target (1090) has not yet been hit, but in my opinion, it looks probable that Soybeans will hit that target (and possibly go as high as the second target (1179). This implies that I believe Soybeans is likely to rally at least 5% in the near future, and possibly rally as much as 10% from current price levels.
-I will be aggressive with taking profits on any short setups that present, due to the bullish weekly divergence that has triggered.
-Utilizing the Weekly MAC & Valuation methods, I note that this market is in an area where we can look for H6/Daily short trades. As mentioned in previous paragraph, I will utilize more aggressive targets.
-The cycles for Soybeans...wow, they are quite something. Decennial cycle suggests significant low being put in, APZ's suggest major low around October 4th, major 5 year cyclical low RIGHT NOW. Other temporary and permanent blended cycles suggest a major low right now. Composite of the 3 most similar years of price action also suggest a major low could happen soon, with a major rally to March 2025.
-A combination of the cycles and the major timeframe bullish divergences have me leaning somewhat towards calling a possible major bottom in the Soybeans market. I would prefer to see commercials COT positioning support this idea, which makes me think maybe we get another nice selloff into the August lows before the real bottom is in. But time will tell.
NKE in an Uptrend, but OBV Shows Negative DivergenceD isclaimer: This analysis is for educational purposes and does not constitute a buy or sell recommendation. The goal is to share a technical perspective based on classic technical analysis concepts for traders and investors. Always make investment decisions with caution, taking into account your own analysis and risk tolerance.
I’ve noticed that NYSE:NKE is in an early-stage uptrend, and according to John Murphy in the first chapter of his book Technical Analysis of the Financial Markets (page 4):
"It is assumed that a trend in motion is more likely to continue than to reverse."
However, I’ve also observed a negative divergence between the price action and the OBV (On-Balance Volume).
As Martin Pring describes in his classic Technical Analysis Explained, Volume II: Volume Indicators (page 555):
"OBV, therefore, offers a rough approximation for buying and selling pressure and has become a very popular indicator."
In NKE’s weekly price chart, we’ve seen a higher high compared to the previous top, but the OBV has not confirmed this movement, which could be a warning sign.
Given this divergence, t he strength and continuation of this uptrend come into question. If buying pressure is not sustaining the current price movement, it could signal trend fatigue or a possible short-term correction. Will the uptrend continue, or does this OBV divergence suggest a potential reversal or weakening of the trend? The question remains whether buying strength will be enough to sustain this rally in the coming weeks.
What do you think? Does the OBV divergence make you concerned about NKE’s uptrend? Share your thoughts in the comments, and let’s discuss the possible scenarios!
META - Still Bullish, But Major Sell Signal LoomingHere is what I am watching on META.
-Like many of the other high flying stocks in the US, the Quarterly, Monthly & Weekly charts are flashing divergence sell setups. Bulls need not be too worried yet, as these divergence sell setups have not yet confirmed. However, the astute trader must be aware that these setups are looming, because if they confirm, they imply a minimum 15% move to the downside for Meta.
-We are bullish on any pullbacks into the 446 to 495 range (Monthly & Weekly MAC lows). These are considered Buying opportunities and valid areas to look for entry triggers on entry timeframes.
-Cycles suggest a cyclical high right around now, heading into a significant cyclical low in early to mid October (possibly into November). I'd like to see this cycle play out to have price trade down into the Monthly/Weekly MAC lows, where we will be ready to hunt entry triggers to the long side.
Amazon - Buying Pullbacks & Cyclical High Expected SoonHere is what I am watching on Amazon.
-We need to be aware that there is bearish divergence setting up on the quarterly, monthly & weekly charts. HOWEVER, this divergence is not yet confirmed, and is therefore not actionable trade intel at the present moment. We need to monitor these divergences, because if they confirm, they imply significant price moves in Amazon share price.
-MAC strategy for the Quarterly, Monthly & Weekly charts remain bullish. Any pullbacks into the bottom of the MAC are BUY opportunities. I do not blindly buy the bottom of the channels, but utilize lower timeframe entry techniques at these levels to trigger into a position. We are still BULLISH Amazon.
-Cycles suggest that Amazon could put in a cyclical high any time between now and October 10th, before putting in a major cyclical low at the end of October. I would like to see this play out to provide us with nice buy opportunities at the bottom of the MAC's.
Google - Looking For Sell Triggers Around 171This video provides an overview of the things that I am watching for Google right now.
-We need to monitor the quarterly, monthly & weekly divergences that are currently setup, but not yet confirmed. These are not actionable right now, but they definitely need our attention. If confirmed, they imply some very significant moves in this market.
-We can see that the Monthly is still bullish, and we had a monthly MAC entry confirm on the Daily on September 13th. This trade still has not hit its targets, with the first being 169.69 (what a great number). The second target being 180. I would not be surprised to see Google trade up to 169.69 sometime soon.
-The Weekly chart is confirmed bearish for the MAC strategy. What this means is that any rallies into the weekly MAC high are opportunities to sell on the H6 chart. I'll be looking for sell triggers if price trades into the 171 level (Weekly MAC high).
-Threw in some cycles, for fun.
Have a great week.
Apple - High & Intermediate Term AnalysisToday, we look at Apple utilizing a variety of techniques: Divergence, MAC & Cycles.
We need to keep an eye on the quarterly, monthly & weekly bearish divergences that are occurring. They have not yet triggered, so bulls don't have to worry (yet). But we must keep our eyes on these divergences, because if they trigger, they imply significant downside ahead for Apples share value.
We take a look at the MAC and see that there is a case to be made for some further upside this week, and based on todays state of the indicators, longs are favored on any pullbacks to the MAC on the Daily chart.
Cycles show a bit of a mixed bag of possibilities. I'm most interested in the Decennial pattern and the APZ's.
Let me know if you have any questions.
Eye Keypoints for Potential Reversal (Technicals + Fundamentals)In the past several weeks, we've observed the following market movements:
1. First Uptrend: Over 23 weeks (161 days), the price increased from around 64 to 124 with a substantial volume of 438.94M.
2. First Downtrend: Following this, the price declined over 11 weeks (77 days) from 124 to 108, with a volume of 237.994M.
3. Second Uptrend: The price then rebounded over 18 weeks (126 days) from 107 to 168, supported by a volume of 319.661M.
Currently, we are in the 11th week of the latest downtrend, where the price has decreased from 168 to around 140, with a volume of 282.442M.
Key Insights:
The current downtrend mirrors the previous downtrend in duration (11 weeks) and volume.
The proximity of the current volume to past downtrends suggests we may be nearing a reversal point.
If historical patterns hold, we might anticipate a potential price rebound beginning within the next week or two.
Next Steps:
Monitor for an increase in volume (towards the 300M+ range) to confirm a reversal signal.
Target a potential price high of around 200 to complete this cycle if the upward trend resumes.
Furthermore , if we expect a dividend of 30 Rs next year and the expected interest rate is 15% , then the target price based on the dividend can also be calculated as follows:
Target Price = Expected Next Year Dividend / Expected Next Year Interest Rate
Target Price = 30 / 0.15 = 200 Rs
Conclusion:
While the current short-term trend is bearish (11 bars area), the increased volume hints at a possible reversal soon. With a projected dividend of 30 Rs next year and an expected interest rate of 15%, the target price based on dividends would be 200 Rs. This fundamental target supports the technical signals suggesting potential upward movement. Proper risk management and self-study should be incorporated.
Will TSLA Break Out and Reach $382?Disclaimer: This analysis is not a buy recommendation, nor a guarantee that the price will reach the mentioned targets. The goal is to share a technical perspective to provide useful information for traders and investors. In technical analysis, there are no absolute certainties, only scenarios based on historical patterns.
The weekly chart of NASDAQ:TSLA is currently in a period of indecision, which could evolve into a new uptrend, possibly forming wave 3 of an upward movement. Entering after the confirmation of this trend would follow a classic technical analysis approach, as mentioned by John Murphy in the first chapter of Technical Analysis of the Financial Markets (page 4):
"The primary goal of analyzing market price action through charts is to identify trends in their early stages for the purpose of trading in the direction of those trends."
Target Projection for Wave 3
If the uptrend is confirmed, Murphy also describes a way to calculate the minimum target for wave 3 (chapter 13, page 345):
"A minimum target for the top of wave 3 can be obtained by multiplying the length of wave 1 by 1.618 and adding that total to the bottom of wave 2."
Applying this to the TSLA chart, the estimated target for wave 3 would be around $382.00 .
Possible Weaker Trend?
A factor that could reduce the expectation of reaching this target is also described by Murphy (chapter 13, page 346):
"In a weaker trend, the maximum percentage retracement is usually 62%."
The amplitude of wave 2 in TSLA shows a retracement between 66% and 78.6% , suggesting a possible weaker trend, which could decrease the probability of reaching the 1.618 target for wave 3.
What do you think? Do you believe TSLA will develop an uptrend? If so, what could contribute to reaching the 1.618 target? Or does the retracement of wave 2 suggest a weaker trend? Share your thoughts in the comments, and let’s discuss the possible directions for TSLA’s price!