A bullish day. But if you look at the price action there is no change to the market structure. Bulls made a run from the bottom of the balance to the top. Keeping the price above today's RTH low 6954 or 6940 (50% of the entire balance, gives the bull a chance to break out the 9-day balance and move higher to December 2018 high and 7230 which is the top of the projected extension (empty box on top). The balance helps the bulls to build energy and eventually slice through 200 daily MA watched by so many eyes. I would be cautions to short if the breakout happens. The market will switch from the balancing mode to development. Shorting will work only if a failure of the breakout is detected and obvious. If not, be a buyer and find the best possible price to get in.
I have mention before that I don't use any indicators, however, on one of my charts I use 20 EMA with the only purpose to keep me honest. When it is pointed up and the price is above it the shorts have less chance to work and vise versa. The Algos do use it to re-enter or defend a pullback to it. I watched the price action on multiple timeframes and I can assure you that 20 EMA is respected.
The benefit of this market is unidirectionality. Seems for the Algos it is much easier to go on in one direction until the price reaches some target and then it reverses. The art is to recognize that cycle and be the best buyer or seller without asking why it does what it does when the environment is not conducive for that direction.
02/12/2019
I have mention before that I don't use any indicators, however, on one of my charts I use 20 EMA with the only purpose to keep me honest. When it is pointed up and the price is above it the shorts have less chance to work and vise versa. The Algos do use it to re-enter or defend a pullback to it. I watched the price action on multiple timeframes and I can assure you that 20 EMA is respected.
The benefit of this market is unidirectionality. Seems for the Algos it is much easier to go on in one direction until the price reaches some target and then it reverses. The art is to recognize that cycle and be the best buyer or seller without asking why it does what it does when the environment is not conducive for that direction.
02/12/2019
Note
The Globex session broke the recent balance to upside and set a new Feb'19 high level. A very balanced RTH session, the breakout area has been defended so far. Low volume day as well. 02/13/2019
Note
Market continues to show resilience. A selloff in the morning driven by economic report shook down some weak hands but the bulls quickly regained the strength and push back hard. Stop run of the shorts added to the upside move. This is where a human trader has advantage over the machines that don’t have a holistic view on the price action.
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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.