In yesterday’s post, I mentioned volatility had contracted and we can anticipate increased trading activity today. I also indicated that an early morning break of Thursday’s lows (1206.50) would portend further downside movement (see that post here). That certainly occured today.
Prior to the US open, we saw the market break Thursday’s 1206.50 lows and continue to push down. Shorts were in order. A picture-perfect setup occurred on the 3-10 Momentum Oscillator and Weis Wave just before the US open. You can see this on the 9,000 tick chart at the red arrows. The entry was fine-tuned as an UpThrust (UT) on the 3,000 tick chart along with a conservative/optional entry as a Test of the UT a little later (small red arrow) – just lovely! The market trended strongly down into just before the noon hour when a small Spring set the stage for a rally off of oversold conditions.
All of these trading concepts are based soundly in the Wyckoff Method.
You are invited to learn about our extensive webinars on the Wyckoff UpThrust and Wyckoff Spring at these links:
An in-depth tutorial webinar on using the highly reliable 3-10 Oscillator can be found here:
And, the incomprable Weis Wave indicator with a bonus 120-minute webinare by creator and 40-year Wyckoff trader, David Weis detailing how to use the absolute best indicator I know – is found here:
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