Sellers in Control on the Major Structure, Buyers Fighting Back on the Minor
Hello traders,
After the Nexus Point, price started making lower highs and formed a new balance range between $3,990 and $4,030.
After breaking out of the range, price went vertical and tested the pink trendline, which I drew from the major high through the Nexus Point. Price is now trying to establish this area as a new major high and extend the swing to the downside. That is the major structure’s intention.
On the minor scale, price is also trying to build a higher low after printing a new minor higher high above the balance range. Price made a nice move down when it touched the pink line, but when it reached the top of the new balance there was also a clear reaction. This shows a battle going on between buyers and sellers across two different scales. Sellers are currently perceived to be in control on the major structure, but buyers won the last battle at the balance.
My plan: I am waiting for new information. A new high followed by a deep retracement would clear out the liquidity in the book. With the Fed interest rate decision coming in less than 12 hours, volatility can spike in either direction, so I am not trading in the current area.
What is your view: does the pink line hold as resistance, or do buyers take control above it? Let me know in the comments.
Not financial advice. Trading involves risk. Always manage your own risk.
Hello traders,
After the Nexus Point, price started making lower highs and formed a new balance range between $3,990 and $4,030.
After breaking out of the range, price went vertical and tested the pink trendline, which I drew from the major high through the Nexus Point. Price is now trying to establish this area as a new major high and extend the swing to the downside. That is the major structure’s intention.
On the minor scale, price is also trying to build a higher low after printing a new minor higher high above the balance range. Price made a nice move down when it touched the pink line, but when it reached the top of the new balance there was also a clear reaction. This shows a battle going on between buyers and sellers across two different scales. Sellers are currently perceived to be in control on the major structure, but buyers won the last battle at the balance.
My plan: I am waiting for new information. A new high followed by a deep retracement would clear out the liquidity in the book. With the Fed interest rate decision coming in less than 12 hours, volatility can spike in either direction, so I am not trading in the current area.
What is your view: does the pink line hold as resistance, or do buyers take control above it? Let me know in the comments.
Not financial advice. Trading involves risk. Always manage your own risk.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.