Let me explain why I think this
-for FOMC on Wednesday I expected a big buy as if the sell wanted to occur it would have (it neither bought or really sold)
-the move for FOMC wasn't as aggressive as you would think from a news event (especially the first major one for the year)
-(in yellow) this would have been the last high before the current highest high - sellers would have been interested here
-(in red) the sellers from the yellow zone would have been taken out and buyers would have become induced on the break out
-(in red) not long after that move the buyers would have also been taken out with the bear push after the fact
-(blue square) price went into a heavy consolidation the last part of yesterday's trading day and to present (time of me typing this)
-(in orange) sellers being induced at the high of that consolidation
-(in turquoise) buyers being induced at the low of that consolidation
-(in purple) we have NFP in about an hour (from me typing this) I expect due to the consolidation it makes sense to take out traders in both directions before continuing bullish
Gold clearly is prioritizing bull momentum, as I would have mentioned if it wanted to sell it would - there were many times gold took out the sellers and made it safe for sells to occur, yet it didn't sell - why?
As per usual - I do not trade news events so I will not be attempting to trade it, however I do love trying to analyze it (this is really engaging for me, if that isn't clear by now lol) I can type for hours and hours about what I see
My system is actually very simple, at its core it is 3 simple questions I am attempting to answer
1. Who is interested? - Buyers and Sellers
2. Where are their stops? Below and above the areas of induction
3. Have those stops been taken out? No, which means I think a whipsaw is likely
Downvote\don't Boost if you didn't read and didn't attempt to understand
OR
Upvote\Boost if you did read and did attempt to understand
If you disagree, you can downvote but please leave a comment as to why you disagree, not doing so doesn't help either of us
-for FOMC on Wednesday I expected a big buy as if the sell wanted to occur it would have (it neither bought or really sold)
-the move for FOMC wasn't as aggressive as you would think from a news event (especially the first major one for the year)
-(in yellow) this would have been the last high before the current highest high - sellers would have been interested here
-(in red) the sellers from the yellow zone would have been taken out and buyers would have become induced on the break out
-(in red) not long after that move the buyers would have also been taken out with the bear push after the fact
-(blue square) price went into a heavy consolidation the last part of yesterday's trading day and to present (time of me typing this)
-(in orange) sellers being induced at the high of that consolidation
-(in turquoise) buyers being induced at the low of that consolidation
-(in purple) we have NFP in about an hour (from me typing this) I expect due to the consolidation it makes sense to take out traders in both directions before continuing bullish
Gold clearly is prioritizing bull momentum, as I would have mentioned if it wanted to sell it would - there were many times gold took out the sellers and made it safe for sells to occur, yet it didn't sell - why?
As per usual - I do not trade news events so I will not be attempting to trade it, however I do love trying to analyze it (this is really engaging for me, if that isn't clear by now lol) I can type for hours and hours about what I see
My system is actually very simple, at its core it is 3 simple questions I am attempting to answer
1. Who is interested? - Buyers and Sellers
2. Where are their stops? Below and above the areas of induction
3. Have those stops been taken out? No, which means I think a whipsaw is likely
Downvote\don't Boost if you didn't read and didn't attempt to understand
OR
Upvote\Boost if you did read and did attempt to understand
If you disagree, you can downvote but please leave a comment as to why you disagree, not doing so doesn't help either of us