Disliked{quote} ... The fact here is that we have in very little space 3 poor low in a row (yes pit session, today London and current preUS). Those should be removed. But after that who knows? We have 2 liquidation pit sessions to correct above plus a huge weakness at the top of them. Let's see.Ignored
Disliked{quote} At last!!!!! Now watch out! It can go further to 3252 or retrace here. Monitor for continuation. It tagged at the pip the 09.01 pit session prominent POC.Ignored
Disliked{quote} Exactly: and what do you think is an half way back? It is in fact the mid point of a range. This is the reason why there is automatic buy. Because traders(weak hands) know that and place there their stops, active and passive (mean buy or close buy). This is why generally we have a little retracement here and then a test below it. Because if something meaningfull will happen it will below it, not at its tag.Ignored
The story:
as written we got 3 poor low in a row and this was too much. It took out them. After that we had an impressive cluster of lows at the 3252 zone, so it was able to reach it and test it.
How it made this move down? With a sharp action without volume and with a mess of single pips. This is not the way a bigger time frame acts.
Price went at the 3252 zone where there were other weak hands with their automatic stops. It retrace a bit then went down again to test below: and below it found the stronger hands (not so strong considering the 15 of August but stronger of those who were going down in such a way.) Note in fact that B period up has a lot of volume, more than A period down.
Price at this point went up to punish all the weak hands coming down (adding madly positions to their shorts and piling on the move) and removing the weakness of the structure (too many single pips).
At this point we have 3 possibilities:
- stay here and balance.
- make an other test below 3252 (and eventually find a confirmation in order to have continuation downside).
- Or go upwards to start the retracement of the weak move from Tuesday high.
Ubi maior minor cessat