little homework...
we are in a decline or H1 down trend and correction in Daily
we make series of LL /HL and till Point D and E the reactions
where stronger then the rallies
we are now in a possible progress of a change in behaviour ..
from bearish to bullish
therefore long positions will be optimal .. and short positions
should be traded tight and with caution
and smaller targets ..
a quick run thru..
A.) we see that this downswing happens on increasing vol. and
wide downbars we found support .. and formed a Hinge..
B.) the hinge we broke out to the upside of teh hinge
C.) but we failed to gain new ground and price was rejected of
former support level , this whole move took place on dimnishing
vol. (buying pressure?)
D.) after a quick decline yet again on increasing vol and big bars ..
the selling pressure kinda reduced as seen on teh shortening of
the downward thrusts and teh declining vol.
we bottomed out ...
E.) the current rallie to point E happened on increasing vol. and
the upbars(1+2 signs of strenght) where wide aswell..,these two
points point to a possible change in behaviour.. aswell as we
dont bounce of a possible supplyline (channel) .. ie we are holding
gains even one of the high vol. bars is at the top ..this could
indicate absorbtion.. rather then stuffing... as we are still sitting at
a fromer broken support area and a potential resistance level...
we might form a range , or the absorbtion progress leads to a breakout to the top.. or we continue teh decline and test the
lows, i drew in postential setups i will take (shorts/Longs) .. but due to teh recent signs .. i will anticipate long setups and the
targetsfor teh short setups aswell as teh management of te short positions will be small/quick..
cheers
sorry for teh text format and grammar..
:eek:
