In my previous post I shared the idea to watch the channel resolution. Today, the channel got broken during the morning day session. That led to a liquidation move to the next support. The market ended the session at the inflection point again. One can see how the price travels from one level to another.
The chart shows clean break of the channel and the levels the price reacts. When day trading it is easy to get lost in the noise of smaller timeframes and numerous smaller moves and fake outs initiated by Algos in both directions. The best is to pick a larger timeframe with your analysis and watch patterns development. The entries could be confirmed on smaller timeframes.
I personally prefer to watch Renko, Range, Reversal bars that reflect only price action helping to see the patterns. The unwarranted data gets filtered out.
The market is at inflection point. This is a support until broken. Watch for a small balance shown on the chart. If it get broken to downside it would add odds for that breakdown to reach the next support. The RSI is showing a positive divergence and practically oversold. We may see some consolidation first. But if the support gives up - no indicator would help. The price action comes first.
Stay nimble. The market offers opportunity every day. It does not matter why it moves up or down. Humans are suckers for narratives. They need to know why. In reality it does not matter. All the information is presented on the chart. Playing odds at inflection points is the only proven technique to trade the market.
9/20/2019
The chart shows clean break of the channel and the levels the price reacts. When day trading it is easy to get lost in the noise of smaller timeframes and numerous smaller moves and fake outs initiated by Algos in both directions. The best is to pick a larger timeframe with your analysis and watch patterns development. The entries could be confirmed on smaller timeframes.
I personally prefer to watch Renko, Range, Reversal bars that reflect only price action helping to see the patterns. The unwarranted data gets filtered out.
The market is at inflection point. This is a support until broken. Watch for a small balance shown on the chart. If it get broken to downside it would add odds for that breakdown to reach the next support. The RSI is showing a positive divergence and practically oversold. We may see some consolidation first. But if the support gives up - no indicator would help. The price action comes first.
Stay nimble. The market offers opportunity every day. It does not matter why it moves up or down. Humans are suckers for narratives. They need to know why. In reality it does not matter. All the information is presented on the chart. Playing odds at inflection points is the only proven technique to trade the market.
9/20/2019
