Fellow traders, quick update to the price action here. We are STILL bullish for right now.
Let's analyze the recent price/volume action:
As you guys can see on the volume, sellers are non-committal to selling. Yes, there is some profit taking... But doesn't seem like it would reflect a change in TREND. This is simply a retracement.
So, how do we differentiate between a trend change and a simple retracement.
Volume has to be pretty high on the sell side, like... Stand out high... But the only candle's volume that stood out was the bullish candle, and the bearish candle next to it didn't have a strong wick on the top or high enough volume for me to be convinced that this was a trend change.
Some profit was taken, obviously exchanges are looking to liquidate long position laggards that saw a bullish candle and went balls to the walls with their margin. This was simply long hunts for the exchanges. As you guys can see, price is already starting to recover. Once we break above the red trend line above, we should see some VERY aggressive buying... This UTAD that is forming in this distribution pattern will actually be part of a much larger Buying Climax (I believe) and will set up a brand new trading range. We should see some re-accumulation after the LPSY and SOW in Phase D of the Wyckoff cycle.
Stay long if you're still long, go long if you haven't yet.
Have 13650 be your stop loss. Anything below that candle would invalidate my theory.
Let's analyze the recent price/volume action:
As you guys can see on the volume, sellers are non-committal to selling. Yes, there is some profit taking... But doesn't seem like it would reflect a change in TREND. This is simply a retracement.
So, how do we differentiate between a trend change and a simple retracement.
Volume has to be pretty high on the sell side, like... Stand out high... But the only candle's volume that stood out was the bullish candle, and the bearish candle next to it didn't have a strong wick on the top or high enough volume for me to be convinced that this was a trend change.
Some profit was taken, obviously exchanges are looking to liquidate long position laggards that saw a bullish candle and went balls to the walls with their margin. This was simply long hunts for the exchanges. As you guys can see, price is already starting to recover. Once we break above the red trend line above, we should see some VERY aggressive buying... This UTAD that is forming in this distribution pattern will actually be part of a much larger Buying Climax (I believe) and will set up a brand new trading range. We should see some re-accumulation after the LPSY and SOW in Phase D of the Wyckoff cycle.
Stay long if you're still long, go long if you haven't yet.
Have 13650 be your stop loss. Anything below that candle would invalidate my theory.
