#ES_F 9.29 - 10.04.24 Distribution Continues ?Last Week :
Last week market opened and failed to get under VAH during the Globex session, we needed that to see more weakness from previous week. Instead we push back inside the Edge and started balancing above most of the supply which brough stability. We got a mid week Globex stop run into next unexplored Value which couldn't hold when Volume came in closer to RTH and it flushed back towards the Edge where we balanced above into the week end.
This Week :
Friday finished with a break back inside the Edge with a few days of Supply above. Sellers are at and above the Edge, holding under 5810s puts us in 5790 - 40s Range which with Supply above could give us fills back Inside/Under the Edge.
Needs to be holding above Edge and 5810 areas for a change and acceptance in 5790 - 5830s Range.
ES
SPY/QQQ Plan Your Trade For 9-27 : Gap Potential PatternToday's Gap Potential will likely resolve in an opening price gap to the upside.
I believe the current price bias, which is still to the upside, will prompt a higher opening price gap followed by a moderate bullish trend today.
I will warn you that an afternoon consolidation period heading into the weekend is not out of the question. So, be prepared for a flat trading range after Noon (NY) lasting possibly 60-90 minutes.
The close of trading today could prompt a fairly big price trend (an end-of-day Squeeze). This is capital moving out of the markets before the weekend, and it could prompt a big opportunity for traders. My guess is it would be to the upside, but it really depends on how price reacts throughout the day.
Right now, I would guess the upward price squeeze will change by 55 to 65% at the end of the day.
Overall, I believe today will be rather muted for the SPY, QQQ, Gold, Silver, and BTCUSD. Yesterday's big CRUSH bar is the volatility event this week (setting new higher highs and higher lows), followed by today's price action, which will settle ahead of next week.
So, today, it will likely show moderate trending with periods of flat/consolidation. The end of the day may show a more aggressive "Squeeze" trend - but we'll see if that happens.
Either way, play the chart. Play what is in front of you, and don't get trapped in any longer-term expectations. There will be lots of opportunities next week for bigger trends.
Get Some.
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SPY/QQQ Plan Your Trade For 9-26 : CRUSH In Trend ModeAnd here we go..
If you've been following my research/videos for the past few weeks, you already know how accurate and valuable my research/content is for traders.
I'm using common techniques: Fibonacci Price Theory, Technical Analysis, Candlesticks, and quite a bit of my own proprietary research to share insights and information with all of you.
The point behind all of this is to help you become a better, more skilled trader - and to learn to be patient while waiting for the best trade setups.
Today, we'll see the benefits of waiting out the last 5+ days of price consolidation and how price moves in only two modes: trending or flagging.
Today is a trending phase.
It seems like all the pressure of capital flow (after the Fed rate cut) is finally starting to hit as the US markets attempt to make a big move.
Remember, the top in the SPY should be between 595-605. The top in the QQQ should be near 505. The top in Gold (temporary peak) should be near 2720-2735. And the top in Silver should be near 34.50-35.00.
I'm still expecting BTCUSD to roll downward over the next 2-3 weeks - targeting 60,150.
Get some.
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QQQs Break Above Unique High Level On Moderate VolumeAnother sign the markets are attempting to break away from sideways/topping patterns is today's closing price on the QQQs.
Today's close above the Unique Fibonacci Price Theory High suggests the QQQs are attempting to break away from the Excess Phase Peak pattern and will likely attempt to move up into the 501-502 price range.
Remember, the first rule of Fibonacci Price Theory is Price must always attempt to reach new higher highs or lower lows.
When it fails to make a lower low, it must roll over and attempt to reach a new higher high.
In this case, as we neared to top of the Excess Phase Peak pattern, the Ultimate High, price would either fail to make a new higher high (and attempt to roll downward) or it would break to a new higher high (thus confirming price is still in a Rally Phase).
Today's close means my analysis of the general markets moving into a "cleared for takeoff" rally phase is starting to become much more valid. We have broken above the Ultimate High on the QQQs with moderate volume.
Now, we should expect the QQQs to attempt to move higher - toward the 501-502 level.
Get some.
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SPY/QQQ Plan Your Trade For 9-25 : Carryover in Carryover ModeToday's carryover trend will likely prompt a moderate meltdown in the SPY and QQQ. Pay attention to how the QQQ is still transitioning away from the shorter-term (blue) Excess Phase Peak pattern while the SPY has broken both the long-term and short-term Excess Phase Peak patterns.
In my opinion, this suggests the markets are still struggling to move higher overall.
The recent Fed rate cut will prompt the markets to shift attention towards more undervalued stock sectors. This will prompt a fairly broad-market rally phase to settle into place.
However, the US elections, which are only about 35 days away, act as an "uncertainty factor" for the markets.
Thus, we have a very interesting dynamic. The markets want to transition into a fairly broad rally while uncertainty and concern related to US policy and leadership are becoming increasingly contentious.
This translates into volatility, and I believe the markets are set up for a DEEP-V type of Flash Price move over the next 30 days. This is why I'm urging traders to stay cautious of a big volatility event after October 10-14.
In the meantime, the SPY and QQQ should attempt to rally a bit higher, and Gold will try to reach $2710-2720.
BTCUSD, on the other hand, looks like it will roll downward, targeting the $60,150 level.
Get some.
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SPY/QQQ Plan Your Trade For 9-24 : Counter-Trend BreakawayToday's counter-trend Breakaway pattern suggests the markets will attempt to move downward (counter to the current Bullish trend) and attempt to find support.
I believe the downward price move in the SPY will target the 565-566 level for a low today - setting up a solid reversal rally phase going into the rest of the week.
We didn't see much downward trending yesterday - so, today could be the day the markets attempt to flush downward a bit.
I'm still urging traders not to overreact to this minor downward price move (potentially today). My analysis suggests the SPY is still on a path to target 595-605 before Oct 10th or so.
Gold/Silver will likely move downward today - setting up a nice base before the next rally phase higher. The strengthening US Dollar will continue to put pressure on Gold/Silver - but I don't believe the US Dollar will rally above 102 at this point.
BTCUSD appears to be rolling over into a consolidation phase. I believe we could see $60k to $62k before the end of this week as a base/bottom.
Now if not the time to be foolish. Just sit back, time your entries, and prepare for the next rally phase in the markets.
Get some.
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SPY/QQQ Plan Your Trade For 9-23 : GAP Breakaway PatternToday, I believe the SPY will consolidate downward after last week's Fed rate cut. I believe the next move for the SPY/QQQ will be higher, but I feel the markets need a pause phase to settle before moving into the rally phase near Wednesday (9-25).
Overall, I believe the SPY/QQQ and Gold/Silver will pause in early trading this week, then move into a continued rally phase as the markets digest the Fed rate cut.
Remember, this 50bp cut won't translate into any real immediate move of 2-4%. The way the markets work is they transition into the opportunities created by the rate cut. That means we'll see technology and speculative stocks attempt to bounce higher going into October 14-15 - maybe a bit further.
But, I do expect a wave of selling to hit just before the elections - so I'm warning everyone to stay cautious after October 11-14 as I believe the likelihood of a moderate Flash-Crash (Deep-V) type of event is very high.
Right now, the markets seem like they want to settle and attempt to break away from recent resistance areas. This is more evident on the QQQ chart.
Your opportunity to buy into lows over the next 2-3 days will allow you to really benefit from the next upward rally phase.
BTCUSD appears to be stalling/topping and will likely roll downward towards the 58k to 60k level over this same time. BTCUSD needs to settle into the next low before attempting to make another move higher (probably very late in October - after October 25-28).
Get some.
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Why The Fed Lowered Rates - My Opinion Part IIThis is Part II of Why The Fed Lowered Rates - My Opinion
The only reason the Fed lowered rates by 50bp this week is because the global markets are reeling under pressure from a strong US-Dollar and a strong US economy.
Without any relief, the new POTUS would enact new policies and push them through Congress, and the US would start another spending spree—pushing the US-dollar-based assets even higher and driving the capital flow into USD-based assets even further.
That capital flow is harming foreign economies, and global central banks have been trying to fight the tide of a very strong US dollar for more than two years.
If the Fed had not lowered rates, we would likely start to see severe pressure on global central banks and possibly even governments/economies over the next 24-48 months.
This is a way for the US Fed, and thus the US economy, from potentially being dragged into a global contagion event after 24+ months of reducing global money flow/function.
Simply put, the US Fed gave in to global central bank concerns related to a strong US economy/Dollar compared to their weaker currencies/economies and the pressure being exerted by a decoupling global economy.
Even though the lower US rates may provide some relief for the global market, the pressure on global currencies/economies may adapt to this "new normal" and continue to squeeze global central banks.
Time will tell.
Get some.
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Why The Fed Lowered Rates - My Opinion Part IThere has been a lot of speculation as to why the Fed lowered interest rates by 50bp.
My opinion is the Fed realized the pressure of a stronger US-Dollar and stronger US economy, headed into the POTUS election accompanied with new spending/policy related to a new POTUS, could put the global markets under extreme currency/economic pressures.
So, in order to provide more breathing room for the global economies, the US Fed decreased rates, taking a bit of pressure off currency rate divergences and allowing global central banks a bit of room to manage their economies against the 900-lb Gorilla (which is the US economy/US-Dollar).
In short, the US Fed needed to alleviate pressure put on the Global markets because of the 900-lb Gorilla US economy.
Not to save the US economy from an internal crisis...
But to save the world from a crisis of their own making. A Global Credit/Debt crisis has been brewing since before 2008.
The US Fed "gave in" and decided they had to decrease rates to reduce the risk of a foreign market contagion event (currencies/debt).
In my opinion, that is the only reason the Fed lowered rates.
Get some.
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SPY/QQQ Plan Your Trade For 9-20 : Breaking Up/Down PatternAfter watching yesterday's rally phase (which I believe was a relief rally driven mostly by foreign markets), I believe today's price move will be somewhat muted.
Yes, today's pattern is a Breaking (UP/DN) pattern, which suggests we may see some type of volatility event today. But overall, I believe yesterday's big price move was a volatility event, and today, the markets will struggle to identify a trend. I believe price will struggle for direction/trend today, and because of that, I'm urging traders to move assets away from the markets heading into this weekend.
I think it is better to move assets into CASH and prepare for trading next week. There is no reason to attempt to pick a position or trade heading into this weekend when we really don't know how the global markets will react to news or conflict events worldwide.
So, the best option today is to try to identify a few early trades, then move your assets into mostly cash and wait it out (till Monday).
I don't expect the markets to do anything besides consolidate below yesterday's highs.
Gold made the move up to 2635-2640 today - perfect. Pull profits today and wait for the next move.
BTCUSD is a bit higher today, but I believe it will pause - just like almost everything else today.
The global markets are still digesting the rate cut. We'll see what happens early next week - but today will probably be a stalling/pause in trend.
Get some.
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DreamAnalysis | S&P 500 Entering a Crucial Phase , Stay Ahead!✨ Today’s Focus: S&P 500 Analysis :
We're diving into one of the key assets in the stock and indices market: the S&P 500. Let's explore what potential movements we can anticipate for the upcoming week.
📊 Current Market Overview :
The S&P 500 has just swept a major buy-side liquidity level, specifically the All-Time High (ATH). This could signal a move towards lower prices, indicating a potential retracement or even a reversal. Additionally, there’s a clear divergence in market structure (SMT) between the S&P 500 and the Nasdaq (US100): while the S&P 500 has taken out its ATH, the Nasdaq has made a lower low. This divergence reinforces the possibility of a downward move.
🕓 Identifying Key Levels :
Here are some critical zones currently present in the market:
- PML : Previous Month Low
- BSL : Buy-Side Liquidity (ATH)
- SSL (EQL) : Sell-Side Liquidity, a key target for price movements
- 4H FVG : 4-Hour Fair Value Gap, a potential retracement zone indicating an area of imbalance
- SMT : Smart Money Technique, signaling further confluence for a move lower
- BPR : Balanced Price Range, another zone of imbalance to watch for potential corrections
These levels are significant as they represent areas where the price typically seeks liquidity, facilitating its movement toward the next target. The Fair Value Gap (FVG) also highlights areas where the market might seek to rebalance, providing further clues for future price action.
📈 Bullish Scenario :
For any potential long positions, we should look to lower timeframes for a sweep of Sell-Side Liquidity (SSL) or a tap into a key Fair Value Gap. Once this occurs, targeting a Buy-Side Liquidity level could present a buying opportunity. However, keep in mind that this strategy is riskier, as the higher timeframe outlook appears bearish.
📉 Bearish Scenario :
Currently, the market offers opportunities to look for lower timeframe entry models to establish short positions. These trades would target Sell-Side Liquidity levels. Monitoring the Nasdaq for correlation is also crucial, as we want the two indices to align before executing any trades.
⚠️ Disclaimer :
This analysis is for educational purposes only and should not be considered financial advice. Always perform your own research and consult a licensed financial advisor before making investment decisions.
SPY/QQQ Plan Your Trade For 9-19 : Top-Resistance PatternToday's pattern is a Top-Resistance pattern.
After yesterday's Fed rate cut and the reaction, overnight, by the global markets, this top pattern suggests the markets will find a peak today and roll downward, away from that peak level.
Overall, I'm not too worried about a major crisis top today. I believe the Fed has unchained the US/Global markets a bit with the 50bp rate cut.
My custom indexes show the US/Global markets have moved into a new US-Dollar-based demand phase at the same time we are seeing a valuation-base and speculative-based price appreciation phase.
That means we are the following is taking place:
_ US Dollar is still stronger than most other currencies and demand for US-Dollar-based assets is still dominant.
_ Price appreciation is based on a renewed valuation accumulation phase. This is where traders see the US stock market as moderately undervalued and begin to accumulation based on discounted valuation levels.
_ Price appreciation is also based on a new speculative trend phase - showing more of a RISK ON mode where traders are chasing the upward price trends a bit more aggressively.
Putting all of that together, ahead of a US POTUS election event and the recent decrease in FFR, I think we are seeing a perfect environment for a MELT-UP trend to continue into a moderate early Santa Rally.
The one thing that could derail this momentum is some unexpected or crisis event that pops up out of nowhere. So be aware there are still risks.
Now, let's sit back and enjoy a rally day while we wait for confirmation of the breakaway high (FPT breach to the upside).
Get some.
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ES, SPX - Santa Rally could trigger Cup & Handle patternA strong end to Q4
Window dressing by fund managers who were underweight equities
would trigger a cup handle pattern
breaking the trendline of the pattern is around 4600 on the #ES
I could also make an argument for HVF pattern we have a high 3 in place
A recession will no doubt rear it's head at some point ...
but a blow off top first to hand bears a beating is definitely a scenario I have shared before.
What To Expect After The Fed rate Cut: 9-18-2024 (Fed Day)This video is really designed to teach you some basics about Fibonacci Price Theory (FPT) Analysis. I wanted to show you how I see the charts using FPT and why, sometimes, I might be seeing things differently than you do on the charts.
In my world, there are simple constructs that are evident on every chart. Supply & Demand zones, trending/flagging, and most importantly Fibonacci Price Theory constructs.
Fibonacci Price Theory is the basis of all my analysis. It is the ground-level structure I look for in price on all charts. Then, I move to more advanced indicators and other analysis types to develop a Success/Failure outcome (trend/trade expectation).
What I do is not hard to understand - it just takes practice.
Fibonacci & Gann techniques are infinitely adaptable to any type of price action. I use another technique I call the Tesla Price Amplitude Arcs which often help me identify where/when price events may happen - but that is for another video (maybe).
Ultimately, it comes down to understanding the structure and intent of price action (either success or failure) and how to position your trades for that success or failure of any price event.
There are really two types of traders: trend traders and counter-trend traders.
Trend traders try to catch the explosive price moves as trend events.
Counter-trend traders try to catch major reversal levels in price and try to profit from counter-trend price moves (reversals/reversions).
Using FPT, you can learn to execute both type of trading styles and improve your ability to see the market trends/setups more clearly.
I hope this video helps you learn to become a better trader and helps you understand my Plan Your Trade videos more clearly. At least you'll be able to understand how I see charts and what drives much of my thinking related to chart.
Get some.
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SPY/QQQ Plan Your Trade For 9-18 : Gap Potential & Fed DayThis video pretty much covers everything I've been telling all of you over the past 5+ days.
Yes, I'm planning on waiting out the consolidation/early trading today and waiting through the Fed decision. There is no reason to jump in front of a moving train attempting to change its direction or speed. You just get run over and beat up.
So, I'm going to take a break this morning, watching the markets and waiting for the Fed rate decision.
While I did look at some data points this morning, the one thing that caught my attention was the Mortgage Refinance Index. That index has jumped more than 45% over the past 12-16+ months while mortgage rates are still above 6%.
I believe this is an indication that ARM borrowers are under some pressure now (after roughly 36 months) to refinance and are dealing with higher rates. 2024-3 = 2021.
Those hot to buy anything after the COVID pandemic may have signed into ARM loans with a 3-year rate guarantee - which may now be rolling into fully adjustable rate loans. That would push the refinance index higher as these homeowners attempt to wiggle their way into something more realistic than the 6.5 to 7.5% rates on their ARMs now.
In my opinion, this is the only thing that may prompt the Fed to lower rates a bit - the pressure on a small segment of home owners in ARM loans that need some relief.
We'll just have to wait and see what happens today.
Get some.
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SPY/QQQ Plan Your Trade Update For 9-17 : Wednesday is CriticalIf you were paying attention to my SPY Cycle Patterns today - boy, a beautiful "top" pattern setup today. Just like my SPY Cycle Patterns predicted more than 3 years ago.
If you've been following my research, you already know I've identified dual excess Phase Peak patterns that should resolve into a rollover topping pattern, sending the SPY/QQQ moving downward towards the end of this week (Sept 19-20). If the current Ultimate High price level continues to act as resistance, there is a real potential for the SPY/QQQ to move into a downward momentum breakdown the following week (Sept 23-30).
But, the one thing that throws the whole topping pattern into a mess is that the RSP has already broken to new ATHs and appears to be attempting to hold above the previous high-price fractals. Thus, we are seeing the equal-weighted S&P already moving into a broad value-based rally phase.
Watch this video to understand why I continue to suggest traders avoid engaging in any big trades or get greedy, thinking they are going to WIN BIG on their trades. Yes, I'm sure some people will hit their targets over the next 3-7+ days, but others will get run over (hard).
Unless you really like taking the risk of getting run over by the markets or market makers, I suggest sitting back and reading a good book while the markets or traders struggle to find their exits.
One thing is certain: the markets will move into a trend by the end of September—either into a breakaway rally phase or into a rollover topping phase.
You'll have lots of time to position for these trends because my research shows the next cycle phase is October 7-10 (nearly two+ weeks away).
So, why stress out about tomorrow's Fed Rate decision? Just sit back and wait for the markets to give you a clearer understanding of what's next.
I'll create another morning video tomorrow morning.
Get some.
#trading #research #investing #tradingalgos #tradingsignals #cycles #fibonacci #elliotwave #modelingsystems #stocks #bitcoin #btcusd #cryptos #spy #es #nq #gold
SPY/QQQ Plan Your Trade Update For 9-17: Excess Phase Peak BreakThis short video explains why it is so important to often wait for the markets to show you what it really wants to do - not trying to force a trade when the markets are undecided.
Many traders are likely short right now - expecting a top to setup in the markets ahead of the Fed rate decision. My research suggests a top would likely form because of the dual Excess Phase Peak patterns on the charts as well.
But, the RSP rally to new ATHs over the past 3+ days gave me reason to PAUSE and really consider the potential that price may rally and break away from the Excess Phase Peak setups.
Well, today we have a new ATH in the SPY. We need to wait till the end of the day to see if price gets rejected at these new ATH levels - but this is a BREAK of the Excess Phase Peak pattern.
Over the past 10+ days, I've continued to share why these Excess Phase Peak patterns are one of the core constructs of price action. They happen all the time (probably 60% of all trading through any year is an Excess Phase Peak pattern).
There are five constructs to the pattern. They can be Bullish or Bearish in structure.
At any time after the initial PEAK/TROUGH is set, they can INVALIDATE. So, we have to stay keenly aware of when/how they can invalidate.
This video will show you multiple examples of Excess Phase Peak patterns and how to use them.
Get ready, we may be at the start of a moderate melt-up for the SPY targeting 585-595 or higher.
Get some.
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SPY/QQ Plan Your Trade For 9-17 : Top PatternToday's Top pattern suggests the markets will melt upward in early trading, finding resistance, then rolling over into a moderate downtrend.
A top pattern is very similar to a reversal pattern. Where price moves higher, finds a key resistance area, tops, and then rolls downward away from the resistance area.
In today's video, I take a quick look at RSP, the equal-weighted S&P500 ETF, where price levels have already moved to new ATHs. And this may be very important for all traders to consider.
If the equal-weighted S&P ETF is moving to new all-time highs right now, while the QQQ and SPY struggle within the Excess Phase Peak patterns, it may be just a matter of time before the SPY invalidates the Excess Phase Peak pattern and moves to new ATHs as well.
The QQQ may be a different story as that chart still shows quite a bit of upper price range before invalidating any of the Excess Phase Peak patterns.
Therefore, I suggest traders stay very cautious today and tomorrow as we see how things play out. Right now, I would suggest the topping/peak pattern has about a 60% probability of playing out successfully today. Those ATHs in the RSP are more indicative of a moderate melt upward instead of a rolling top pattern - at least right now.
Gold and Silver will pause a bit ahead of the Fed rate decision. All markets are in a "wait and see mode" ahead of the Fed. This is another reason why you should not be overly aggressive in your trading right now.
Bitcoin is attempting to FLAG again - moving into a tighter, more consolidated price range just below $60k. I still believe an explosive upward price trend is building for BTCUSD.
I believe we will see an explosive upward price trend setting up just before the elections across the SPY/QQQ and other markets as well - we have to get through the next 45 days of consolidation and uncertainty ahead of the elections.
Get some.
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NQ-SP500-NKD-BTC, The wave has startedCME_MINI:NQ1! BINANCE:BTCUSD
CME_MINI:ES1! CME:NKD1!
The wave has started. It's slow, and choppy as they move through the time frames, so if you play the longer time frames, be patient. If you play the shorter time frames, ensure you take profit along the way so you're not chopped up
Video covers – NQ – SP500 – NKD – BTC
ES (S&P) – 100 pt price blocks (Bold Yellow Lines)
NQ (Nasdaq) – 500 pt price blocks
NKD (Japanese Market) – 1000 pt price blocks
BTC (Bitcoin) – 5000 pt price blocks
Legend
Bold Yellow Lines: Top and Bottom of Price Blocks
Dotted Blue Lines: 50% of any Price Block
White Solid Line: 20 EMA
Yellow Solid Line (not price block): 50 EMA
Blue Solid Line: 200 EMA
Method: Follow the MACD and the 200 EMA. Generally speaking, if the MACD is negative or heading negative, the price should be below the 200 EMA or heading below it, and visa versa, as it goes up to go positive, so should the price, and you should be targeting a price (at a significant level – price block) above the 200 EMA.
SPY/QQQ Plan Your Trade For 9-16 : Gap Reversal PatternMy honest opinion related to the next 2~3 trading days is - go take a few days off and wait out the markets for the next 48+ hours.
I don't believe there will be much in terms of opportunity over the next 48-72 hours as price is likely to chop around near the top of the current FLAG. The real opportunity comes late Wednesday and into Thursday/Friday as price should attempt to break downward (if my analysis is correct) and move into a solid 5-7+ days of downward price momentum.
What I see happening over the next 48-72 hours is Sideways Chop. Not fun for the average trader and really not something you can make a lot of money trading unless you are very skilled at catching short-term price rotation with options.
Overall, the next 48+ hours should be about observation - watching price attempt to stall, break away from this FLAG, and setting up for the bigger move near the 19th & 20th of September.
I'm not telling you how or what to trade. I'm just saying I believe the next 48-72 hours will be very difficult for average traders.
OK. Happy Monday.
Get some.
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NQ - SP500 - NKD - BTC Coming Week(s) - BearKey Points:
Video covers – CME_MINI:NQ1! - CME_MINI:ES1! - CME:NKD1! - BINANCE:BTCUSD
ES (S&P) – 100 pt price blocks (Bold Yellow Lines)
NQ (Nasdaq) – 500 pt price blocks
NKD (Japanese Market) – 1000 pt price blocks
BTC (Bitcoin) – 5000 pt price blocks
Legend
Bold Yellow Lines: Top and Bottom of Price Blocks
Dotted Blue Lines: 50% of any Price Block
White Solid Line: 20 EMA
Yellow Solid Line (not price block): 50 EMA
Blue Solid Line: 200 EMA
Method: Follow the MACD and the 200 EMA. Generally speaking, if the MACD is negative or heading negative, the price should be below the 200 EMA or heading below it, and visa versa, as it goes up to go positive, so should the price, and you should be targeting a price (at a significant level – price block) above the 200 EMA.