The first 10 days has trades in May and it has now shown its hand on what type of cycle this is. It is not a trending cycle nor a market maker cycle but a range bound cycle.
Just like in February, the Monthly open, in orange, is going to be major support until it breaks through it.
The purple line is May's FOMC release.
Look for a flush of the two equal lows and price to form a bottom slightly under the Monthly Open before a rally higher.
FOMC releases are used as MAJOR, MAJOR support and resistance levels. Expect May's FOMC level to do the same. Expect May's Monthly Open to be the price that price mean reverts around.
The average Monthly range is 3000 ticks. Using the Monthly open as roughly the 50% area, the range should be about 39,200-42,200
Below is a guide for upcoming daytrades and what to look for:
A layering into FOMC with the removal of the three lows. Two of which are suspended above the FOMC level
Major support trade where price flushes the lows under the Monthly Open and a rally back inside.
A short trade after price runs the highs of the two equal highs inside of the peak high.
Moral of the story?
Break out your range playbooks and fade every break. Look for highs and lows to be put in under/ over major swings. Price will run these levels.
Just like in February, the Monthly open, in orange, is going to be major support until it breaks through it.
The purple line is May's FOMC release.
Look for a flush of the two equal lows and price to form a bottom slightly under the Monthly Open before a rally higher.
FOMC releases are used as MAJOR, MAJOR support and resistance levels. Expect May's FOMC level to do the same. Expect May's Monthly Open to be the price that price mean reverts around.
The average Monthly range is 3000 ticks. Using the Monthly open as roughly the 50% area, the range should be about 39,200-42,200
Below is a guide for upcoming daytrades and what to look for:
A layering into FOMC with the removal of the three lows. Two of which are suspended above the FOMC level
Major support trade where price flushes the lows under the Monthly Open and a rally back inside.
A short trade after price runs the highs of the two equal highs inside of the peak high.
Moral of the story?
Break out your range playbooks and fade every break. Look for highs and lows to be put in under/ over major swings. Price will run these levels.
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.
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.