⏭ Compression on key area = Confrontation of forces ⏮ - LDTP #9
Let's do the point !
Much things to say here. Don't really know where to start so we will do a recap first :
All ideas are attached under, go check it to see more details.
I will not hide that I would prefered to see the market breakout this yellow resistance which mean we was going for a target on the long position but like expected on an answer someone asked me this week on the wyckoff idea we see a strong reaction on the resistance. We can already notify of a bull exhaust + selling pressure combined to buying volumes, which mean we have a compression on the level due to the oppositions of strengths (buyers/sellers) motivated probably also by profit taking. So now we have some scenarios in front of us :
In the case we go back into the range, it's become an interesting Wyckoff pattern for you. I developped this pattern a little more in the answer I gave in comment of the wyckoff idea. The diagrams I made on right of the answer show well the missed cycle like opportunity for a B phase to see an STB/new AR in fonction of where it take place.
"Making money in trading is math and respect of strategy, so never let your emotions guide you in uncomfortable positions"
Let's speak of strategy now. I know that when we are on a top of range it's interesting to imagine it break and making a lot of money, going to the moon and all this things. But trading is a work of precision, and making money is a work a precision too. You make money by controlling details. Signals and levels couldn't be ignored and work have to be done, that why I took a short position on 1 hour timeframe ON SIGNAL & ON KEY LEVEL, not to aim for durable profits but only to edge my daily long position. I explain, we see we are on a level that will probably conclude to a win if we break up and a loss if we break down. I could just cut my position now but it's the opposit of what being profitable ask you. Because that mean you trade with emotions, you have fear so you surrend and probably develop frustration if it finally go to your target. You will not win money if you trade with frustration. But if you take the origin of your fear, it's loss ! So act on your exposure, control your losses, edge your long by a short targeting on profit the amount of your possible loss. Of course this short have to be part of a strategy (we don't do coin flip here), if you aren't profitable in your strategy it's also useless cause you will just raise your exposure. So if I resume : I assume to gave back to the market a part of my gains to also assume to don't take losses.
Don't forget that you also win money when you don't lose it.
Like, follow or comment if you like, I need it to continue !
Much things to say here. Don't really know where to start so we will do a recap first :
- 💡 LDTP #7 ▶️ Long daily entry pattern (bottom of red rectangle represent stop loss, bottom of green rectangle represent breakeven level, top of green rectangle represent first target, higher you find the speculative area for the second target)
- 💡 LDTP #8.1 ▶️ Confirmation of the rotation of dynamics in the market cyclicality
- 💡 LDTP #8.2 ▶️ Wyckoff Pattern with a scary positionning here for a spring, important to read the idea to understand all the issues with an interesting comment too (Yellow rectangle for the support area, Blue for the resistance, annotations for the temporality)
- ✏️ CHART ▶️ Highest yellow line for the primary daily resistance, blue for the support and so both forming channel, lowest yellow line for the primary weekly support, $28,100 - $32,900 rectangle is the weekly trend support area
- 🔥 H1 SHORT ▶️ Just positionned short to edge the long one (go check it for more details), purple rectangle is the imbalance created by the breakout of the resistance, which take the role of first target too.
All ideas are attached under, go check it to see more details.
I will not hide that I would prefered to see the market breakout this yellow resistance which mean we was going for a target on the long position but like expected on an answer someone asked me this week on the wyckoff idea we see a strong reaction on the resistance. We can already notify of a bull exhaust + selling pressure combined to buying volumes, which mean we have a compression on the level due to the oppositions of strengths (buyers/sellers) motivated probably also by profit taking. So now we have some scenarios in front of us :
- if it is convert in selling volumes it mean, in our Wyckoff pattern, in a return on support if we come back in the range, and probably to a spring which could be critical (reasons developped in the wyckoff idea)
- In the case we don't have selling volumes it could occur to a simple pullback on the broken resistance area and now the imbalance area. Like I already explained imbalances are anomalies of market, price is mostly attracked by it to be filled with volumes (except on one-sided trend / bullrun)
- If buyers overwhelmed sellers we will see a breakout, a buying volume candle and so an uptrend but we will have time to develop it if it happen.
In the case we go back into the range, it's become an interesting Wyckoff pattern for you. I developped this pattern a little more in the answer I gave in comment of the wyckoff idea. The diagrams I made on right of the answer show well the missed cycle like opportunity for a B phase to see an STB/new AR in fonction of where it take place.
"Making money in trading is math and respect of strategy, so never let your emotions guide you in uncomfortable positions"
Let's speak of strategy now. I know that when we are on a top of range it's interesting to imagine it break and making a lot of money, going to the moon and all this things. But trading is a work of precision, and making money is a work a precision too. You make money by controlling details. Signals and levels couldn't be ignored and work have to be done, that why I took a short position on 1 hour timeframe ON SIGNAL & ON KEY LEVEL, not to aim for durable profits but only to edge my daily long position. I explain, we see we are on a level that will probably conclude to a win if we break up and a loss if we break down. I could just cut my position now but it's the opposit of what being profitable ask you. Because that mean you trade with emotions, you have fear so you surrend and probably develop frustration if it finally go to your target. You will not win money if you trade with frustration. But if you take the origin of your fear, it's loss ! So act on your exposure, control your losses, edge your long by a short targeting on profit the amount of your possible loss. Of course this short have to be part of a strategy (we don't do coin flip here), if you aren't profitable in your strategy it's also useless cause you will just raise your exposure. So if I resume : I assume to gave back to the market a part of my gains to also assume to don't take losses.
Don't forget that you also win money when you don't lose it.
Like, follow or comment if you like, I need it to continue !
Related publications
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.