From around September 2022 Nasdaq has been trending up making new higher highs but what has it been trying to read for and when will this bullish movement come to a halt for bearish movement for the next six months possibly into next year as well.
Looking at the far left of this chart the was a market structure shift (MSS) from an uptrend to a downtrend. This was caused by institutional funding that caused a displacement lower and the bearish order block that caused this MSS had not yet been traded back to until this week for mitigation. This is what price has been reaching for all these months.
However just above this price point we has a weekly fair value gap (FVG) which was
left open and signifies liquidity in or on it and just above it we have aD1 bearish OB.
SO WHAT ARE THE NEXT POSSIBLE MOVES???????
The real question is so which Order block(OB) is Nasdaq going to respect downward movement!
1) The H4 OB that caused MSS...If we see a displacement lower that breaks previous low, we wait for a retracement into that displacement then we enter sells on the FVG or bearish OB that would have caused that displacement...So wait for confirmation before blindly selling
2) Price might want to fill in the weekly FVG first before ultimately going down. Should this be the case ill look to sell at the last D1 OB after the aforementioned conditions(displacement lower leaving a FVG and OB on lower timeframes) are met
Good luck and good trading
Looking at the far left of this chart the was a market structure shift (MSS) from an uptrend to a downtrend. This was caused by institutional funding that caused a displacement lower and the bearish order block that caused this MSS had not yet been traded back to until this week for mitigation. This is what price has been reaching for all these months.
However just above this price point we has a weekly fair value gap (FVG) which was
left open and signifies liquidity in or on it and just above it we have aD1 bearish OB.
SO WHAT ARE THE NEXT POSSIBLE MOVES???????
The real question is so which Order block(OB) is Nasdaq going to respect downward movement!
1) The H4 OB that caused MSS...If we see a displacement lower that breaks previous low, we wait for a retracement into that displacement then we enter sells on the FVG or bearish OB that would have caused that displacement...So wait for confirmation before blindly selling
2) Price might want to fill in the weekly FVG first before ultimately going down. Should this be the case ill look to sell at the last D1 OB after the aforementioned conditions(displacement lower leaving a FVG and OB on lower timeframes) are met
Good luck and good trading