Scenario2 dotted trend line + 11647 short proved fruitful. Observations: - Failing to attempt the supply/resistance line of channel = bearish - Descending triangle = bearish setup - Low participation in the market = tendency to whipsaw - volume
Possible scenarios: 1) Breakdown of channel + descending triangle for short on retracement 2) Market goes into rotation zone (yellow box, about 500pt range), so we find trades at the zone's edges
Weekly = Higher vol down bar, narrow spread, narrower net decline = minor demand Daily = Ave vol down bar close at low = minor supply
Price reaction levels: Short on Test and Reject | Long on Test and Accept