Good Evening/Morning guys..
Ok so here is a break down of what we can expect going into tomorrow.
Firstly, I do want to remind you that we have Core price index on Friday. So if the market expects prices to drop, then retraces may happen across the board after today’s wild price action.
Firstly Bitcoin….
Look at the Hyblock. Notice how they are aggressively heading towards the liquidations for the longs. Will bitcoin pick up steam with this move?
Now bitcoins chart is showing traits of what would be a descent lower…Each retrace in principle should finalize within the boxed-out zones (refer to bitcoin chart)
I am only making this assumption as the aggressive behavior today and bitcoin just rejecting those highs is giving me the belief that MM is looking at getting shorts filled above the 22k zone to break down lower.
They tapped that 22291 zone and reversed. So logic would say we expect them to make their way towards this zone and try and break lower…But anticipate a retrace going into Asia tonight. Use the 5-minute 800 and 200 ema to establish the trend which you can see the price is trading below.
EURUSD – Euro is getting ready to pull a fast one. Notice the highs where the Topside vectors sit. This in my opinion is the last zone before the euro looks to come down. Of course, if they breach higher then it will happen at speed and they will reverse it back down again.
Lately, the euro has been difficult to trade with the fast plays. The harder an asset becomes to establish direction, there is a great chance MM is working this asset for a bigger play.
SP and NASDAQ
Now both these indices are being tested especially with news that keeps rolling out and causing chaos.
On the higher time frames SP 500 is trading away from a key 200 ema zone which if it continues to do so and resistance is present, Wall street would see this as a sell zone if it were to come back up towards it.
Now consider the chart i have added for both nasdaq and SP500.
My drawings imply that earnings this week could bring sp and nasdaq back up.
Topside vectors for SP 500 would be 4131 and nasdaq would be 12134.
So you ask yourself, if you were to simply take a trade on this basis, could price hit this point?
Depends if you want to sit through wild drawdowns.
This leads me to the next logic…
When you start your trading day…What are you trading towards? Are you making a logical decision to say ” I expect price to go back up” REASONS for this: Vector candles, weekly highs,psy ranges?
The practice here is to develop a discipline to find a zone that the price would likely return to and trade “towards” that zone, If you are running a trade and its not showing strength “towards” your chosen zone, we switch our logic and look for the next zone that they are working “towards”
I hope that puts things into perspective.
Lets see what happens
Mad love
T
