DislikedLast Situation on Daily and Outlook for Next Week Before switching to holiday mode I wanted to give a quick analysis around the pair for coming week.... I hope it still helps during the expectedly slow and choppy Christmas phase.. Happy Weekends and Xmas to All Stay Green {image}Ignored
Take a look at the chart below.
On Thursday we see a fast move down that culminates in a Buying Aggression bar. This Buying Aggression bar is indicative of Initiative Buying. As I have stated before, once you take a position short (sell), you immediately become a buyer. If you enter the market by selling, you need to exit the market by buying. This bar appears to be Initiative Buying. This would be buying not by shorts closing out positions, but rather buying by NEW LONGS. It would seem some higher time frame players were confident enough to position themselves long going into the Holiday break.
After going nowhere fast, and balancing for most of the day on Friday, we saw a false break out to the down side. Selling Aggression was quickly rejected and there was no acceptance below. Following that interval, we saw every Buying Aggression bar have follow thru and acceptance above. Chart Modes I & II turned green and price traded above the Cycle of Time Line.
Until there is new evidence, which could come as soon as the first price bar when the market opens, I am biased to the long side.
Wyckoff VSA: (1) Supply & Demand (2) Effort vs. Result (3) Cause & Effect
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