In this project all elements are projected as potential support/resistance zones. The snapshot was created taking into account multiple scenarios that might unfold, while trying to catch at least one big turnaround event at one of the shapes, regardless of the path of the price.
The main scenario would be a pivot point at the green rectangle. A more bold scenario would be a fall back from the blue ellipse, heading in the zone of the red one (/above it). Other scenarios could also happen, like bounces from the other ellipses, but regardless of the outcome, this project is intended to catch at least one clear opportunity with a candlestick pattern for a potential pivot point. Any occurrence of a green candle followed by a red one, or the other way around, can count as a potential entry signal if it is near an element from this snapshot, but it is preferred if such a candlestick formation occurs at what could be the end of an easy to identify wave.
The Goal is to maximize profits and attempt to ride any market wave that starts with the signal pivot point for as much as possible with trailing stop, position management which can include partial cash in, or just securing the position at break even at the right moment which provides a decent buffer zone, letting the position survive for as much as possible until a reversal signal occurs. So no targets for any given entry.
As usual, the time stamp is relevant to observe the price action near it in case exceptional events occur, while the marked price level can also be relevant in case a pivot point signal occurs near it.
The main scenario would be a pivot point at the green rectangle. A more bold scenario would be a fall back from the blue ellipse, heading in the zone of the red one (/above it). Other scenarios could also happen, like bounces from the other ellipses, but regardless of the outcome, this project is intended to catch at least one clear opportunity with a candlestick pattern for a potential pivot point. Any occurrence of a green candle followed by a red one, or the other way around, can count as a potential entry signal if it is near an element from this snapshot, but it is preferred if such a candlestick formation occurs at what could be the end of an easy to identify wave.
The Goal is to maximize profits and attempt to ride any market wave that starts with the signal pivot point for as much as possible with trailing stop, position management which can include partial cash in, or just securing the position at break even at the right moment which provides a decent buffer zone, letting the position survive for as much as possible until a reversal signal occurs. So no targets for any given entry.
As usual, the time stamp is relevant to observe the price action near it in case exceptional events occur, while the marked price level can also be relevant in case a pivot point signal occurs near it.
Comment:
This potential Harami is a good looking one, in a nice position for a possible retracement.
Comment:
Shorter candle at the close. Not an ideal setup.
Comment:
If it ever gets to 38400, especially in the blue ellipse zone, we might see signs of a potential reversal.
Comment:
Whit arrow hit. Next steps might include a correction tune and another timid push towards the blue ellipse where things could get interesting. Other scenarios are also valid but while the first encountered ellipse might not be tradable, the blue elements might change that for us hopefully. Support at the blue marked price level, potential resistance and big reversal pattern in the big deep blue.
Comment:
Rebound from the lower edge of the ellipse which confirms the element for support/resistance scenarios, while also consolidating the overall confidence for the project. As previously mentioned, the blue line could be of significant importance if we see some relevant price action at it, preferably with another bounce and maybe a candlestick shadow.
Comment:
An interesting rebound at the top edge of the ellipse.
Comment:
The purple ellipse did the job for the correction. We are entering the blue which could get bumpy, rowdy, and eventually highly aggressive and volatile. Best advised to reduce exposure and risk in the time frame of the blue ellipse. On the other hand opportunities for profits might arise depending on trading approach and strategy. The price action should be really interesting in this zone.
Comment:
Some bearish action at the top edge of the big blue ellipse but the overall bullish wave does not seem ready to end in this position. The suspicion of upcoming chaotic swings inside this zone still holds.
Comment:
I mentioned in a previous update that things could get a little chaotic inside the blue ellipse and they actually did. We had two bearish drop days followed by recovery from the bulls. So far the price has hugged these ellipses with no meaningful momentum from either side, besides the swing that pushed the price from the purple ellipse into the blue... One scenario highlighted in this snapshot is an incursion inside the blue ellipse (not counting the time stamp where something interesting could happen), after that I tend to be a little bearish biased, even though I don't see any potential drops for the red ellipse, but for any such scenario I am waiting for clear signs and a convincing candlestick setup that might signal a definite weakness in the overall bullish aspect of the grander wave that got us here... Will try and post more updates as anything can happen.
Comment:
Two candlestick shadows on the up at the marked time stamp. I shouldn't be bearish biased on this one just because I am on Nasdaq, especially as I can be wrong on that one too. Unfortunately, I still see the shit in sentiment as a decent probability but only with a confirmation of a bearish candle somewhere this week.
Comment:
Decent slow rolling down of the market price after the setup at the marked time stamp but we now have a pivot and a solidish bullish candle which could turn things around. Across the board similar setups have occurred on other indices so we could have a bullish attempt tomorrow or even for 3 trading days (regardless of the risk of a shock negative Monday)
Comment:
We had a modest follow up bullish day but then a bearish harami which could have been treated as a potential pivot point setup. Don't know if the white dot will be eventually hit, and this project overall still looks like a modest one, but the reversal at the market time stamp was still interesting imho.
Comment:
A lot of bouncing around and relative stagnation on resistance on the ellipse. If the bulls can't manage to get the price out of this box, the bears might try to push it for lower lows and see how it goes.