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I don't think I quite understand your chart though. If I am understanding this right, there is no support below 1720?
I took a trade on the ES today, but because your chart was the NQ so I'll post the setup here too. The same thing occurred on the NQ anyway so it's all the same. Your last rectangle was 1700-1710. I had support around 1707 actually, so around the mid of that. Then almost exactly one hour into the session price went down on heavy volume (see qqqq chart) and broke that support. The next bars were all small and on low volume, a retracement right? So why does price rise then? I fear I am losing touch with reality here. |
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From my perspective prices were marked down to test the supply early in the day. They then hovered just below a key support area and because there was little volume below it (no supply), it was the go-ahead for the smart money to markup prices after they accumulated on YOUR and everyone else's selling hoping for a continuation of the down move. (not meant to pick on you, I got burned like this before). Basically you got caught in a trap. There was a spring just below that support zone that gave away the strenght if you missed it.
edit : chart times are an hour ahead of ET.
