Sign of times: every time someone says, the coded room, I hear the Covid room.
The point of this artikel is to point out shit at random.
What happened when the market floated to the surface on the 67-samp momentum? Smart Money was aktiviziert.
This actually was a better entry than the top itself. Now, a quick word about the 10-16 rejections. This could be played with any imaginary line, but if you have some basis, the better. I circled & arrowed 3 of these, and you can see that price always came back very close to the line itself before embarking on a 100+ pips journey. The Open and the Close fell to one side of the line, you had a move beyond the line by 10+ pips then a close back on the other side of the line by 16+ pips. The first two lines were MFI step shifted support/resistances and the third one reaching all the way was an MFI reversal divergence displacement line. We just had another one of those MFI support/resistance level formed at 1.0877 so we could / should see a move to 1.0867 at least to fulfill the first criteria of the rejection.
On the image below, you can see how the low and the high recently was made at 2.2 points away from the 100-mark on the 67-sample Hourly chart.
Guess where price finished at on Friday. Ett Hundra, yes.
Quickly, let’s talk about 5-minute signals.
Here’s how the low was made early on Friday.
Then there was that spike that caused the Smart Money to activate.
An Excessive RSI2 reading was followed by 2 Satisfactory readings. Are you beginning to see a pattern here?
The day ended with another E-S-S.
There is also a projected distance due to the strength of the move to guess where…?!
I believe that knowing that Smart Money is never far away to get in on an opportunistic trade, they can be provoked.
If you opened 7 lots at 1.1042 yesterday, you could had made 10k in a single day. I incidentally opened 10.5 lots instead of .10 (happens infrequently in the cell phone business), so I immediately closed it off with all the adrenaline in the head.
I shared the desired conditions for the opportunistic sell on this blog.
If I was Smart Money, I would not put out any pending orders, but rely on my algorithm to start buying at market when my level was hit (or when it was crossed back through after a return). This is why I think sentences like “I saw buyers stepping in” making little to no sense. Level 2 is mostly to entertain the retail with spoofing along with some poor quality algos relying on order flow sizes provided. No offense, Masi. Time will tell who’s knowledge is worth what.
Be kind, Erase & Rewind
In closing some Smooth Jazz from KKSF from the Coit tower. 12 years a nostalgy.
My current thinking is a lower low for sure, but it may not be any further than another 12 pips below the current low. If it makes is to 1.0864 I’ll be doubling down on the longs.
Here’s an example of riding the 3-sigma band:
The next pro volume levels down: