Weekly Bearish Engulfing candle on QQQ after support was broken Friday of last week. Price is also failing to make higher highs on the lower time frames indicating buyers have yet to step in which potentially means more downside for the market.
This post is a test of my thesis that I can accurately identify a banker's candle that tests market structure. The Thesis works like this:
Bank trading firms need to test the market structure with specific actions on specific days that tell them what the market can tolerate and they base their plans accordingly.
For instance if banker candles identify a market...
Looking at the TQQQ hourly chart, you will notice that the megaphone is showing reward to the downside around 56. The upside is limited to about 114 area. What is the logical play? Comments?
Also the Yearly RSI is touching 80. What happened last time yearly RSI touched 80? Feb 20, 2020, Sept 2020 Kaboom!
Please do your own due diligence these are just fantastic...
Volume trend suggesting upper TL shall resist and not be broken this time around.
IF:
-5MA, 10MA fail 50MA golden cross
-TL holds QQQ price
-MACD reverses
-NFLX doesn't break the bear mkt by itself on THU
THEN:
-plenty of air below for bungee plunge.
-will grab a set of 2/15 QQQ 157p, looking for return of 15.00-25.00 per contract.
