EU, Some Thoughts:
Today PA climbed 200 pips, finding resistance around half number, same area as marked by the RgH line. From the volume study, we see that the TF reaching the high was a very heavily traded TF, indeed! This prompts thoughts of a selloff, since this high area is a previous resistance area and this is the second knock against it, but with much higher activity up there. You can confirm that with the volume study on an M1 chart....the highest volume TFs are those at the highs.
The conclusion I draw from this is that there was a selloff, and that is reason to keep an eye out for a possible resumption of the longer TF down trend. Hence, there might be a SonicR short setup coming.
Today PA climbed 200 pips, finding resistance around half number, same area as marked by the RgH line. From the volume study, we see that the TF reaching the high was a very heavily traded TF, indeed! This prompts thoughts of a selloff, since this high area is a previous resistance area and this is the second knock against it, but with much higher activity up there. You can confirm that with the volume study on an M1 chart....the highest volume TFs are those at the highs.
The conclusion I draw from this is that there was a selloff, and that is reason to keep an eye out for a possible resumption of the longer TF down trend. Hence, there might be a SonicR short setup coming.