Consolidation Midweek Rally #9 (Friday Nonfarm Payrolls)
On Monday, I observed the price reaching an old high, but I decided to wait until Wednesday to act. My reasoning was based on a daily fractal pattern, along with liquidity formed on Tuesday. I was targeting the Wednesday London session after 2:30 PM NY time, aiming for a return to the 15-minute order block (OB). The liquidity was taken, but the price only moved just under 50% of the Average Daily Range (ADR).
Considering that Wednesday marked the third consecutive bullish green candle, I anticipated Thursday would turn bearish, providing a better opportunity on Friday to secure a good number of pips. However, the same strategy I used on Wednesday didn’t yield the expected results.
This experience highlighted an important realization: Friday’s move was likely a liquidity run, signaling a strong possibility that the price might turn bearish. With the Commitment of Traders (COT) data showing the USD in a neutral position, this week’s developments will be critical in understanding their stance. There’s now a significant chance we could see a bearish month ahead, with Friday potentially marking the high of the week.
Considering that Wednesday marked the third consecutive bullish green candle, I anticipated Thursday would turn bearish, providing a better opportunity on Friday to secure a good number of pips. However, the same strategy I used on Wednesday didn’t yield the expected results.
This experience highlighted an important realization: Friday’s move was likely a liquidity run, signaling a strong possibility that the price might turn bearish. With the Commitment of Traders (COT) data showing the USD in a neutral position, this week’s developments will be critical in understanding their stance. There’s now a significant chance we could see a bearish month ahead, with Friday potentially marking the high of the week.
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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.