A wolfe wave long entry missed in NQ.
The market moves very slowly that I have left the desk by then already.

This is morning is characterized by lack of conviction and intention to move in either direction.
Check the tiny range we had this morning, it reminded me the summer range.
The initial balance was tight already, but just look at the lack of range expansion to that tiny range.
It is incredible.
Not a lot can be traded. This morning, neither dax nor cac tested any technical level i have outlined.
The only tradeable setups are a couple of cypher pattern fades. The cypher pattern forms when we have range bound non-directional price actions.

shrekchenbin 

It is incredible.

great thread. Thanks.

So what do bankers do when equity indexes do like that ? Do they go to the cafeteria to get a glass of soda (of course!) , or do they look for something else which might be moving a bit more?

Yesterday was an emotional trend day up suggesting a lot of panic buying as the massive rally put a lot of people off guard.

Coming into the open, the overnight inventory is 100% long which adds to the emotional chase of the market.
Beware of the possibility that we would have a counter auction out of the open to run over those overnight inventories.

The odds are quite high that we would at least part of the move yesterday to fill in some holes in the TPO profile.
I am watch 6532.5 as the first target.

If the gap is not closed fairly quickly after the open, then we should trade with the gap.

guidoisot 

great thread. Thanks. So what do bankers do when equity indexes do like that ? Do they go to the cafeteria to get a glass of soda (of course!) , or do they look for something else which might be moving a bit more?

Thanks guidoisot!
I think the bankers are simply watching tennis or cricket games for the whole morning.

probably no one knows where it is going to

guidoisot 

probably no one knows where it is going to

You have quite a complicated charts. I was overwhelmed when trying to read your first chart.

I know! it is an issue seeking too many confirmations through too much stuff.
On the contrary, I see, or at least this is what appears to me, that you have few clear simple references in the way you interpret the market, so I hope you will continue highlighting them here on your thread so that I might be able to pick up as much as possible with regards to this aspect. Thanks Bye

Another trade war rhetoric from Trump white house, and the market has reacted. But the market are starting to have the trade war fatigue that the sellers are getting less and less, the selling force is getting weaker and weaker. Don't get me wrong that the investors are still nervous, but we are running out of the panic seller and speculators willing to sell into this market at this moment.

Just take notice of the massive ending diagonal in NQ from which the market has just broken out of. It is a sign that the sellers are trapped and a new wave to the upside is initiated. We are in the beginning phase of that up swing, so long as the rhetoric don't turn into an all out trade war.


If we take a look back at the DAX. The three down profiles have formed a perfect flag pattern and the break to the upside was violent to say the least. It has left a poorly traded profile and some repair work is needed. I am looking at two TPO hole in the chart that could provide me some setups. As we speak, we are just trading out of the first TPO hole. It is likely that we are going to see the second TPO hole to be filled later today.


This morning we are most likely to have a tight range day as the market is waiting for the NFP this afternoon. So I would expect to do some mean reversion trades by using harmonic patterns.

In a boring tight range day, the DAX is not doing anything except testing volumes from both sides.
See how the initiation volume at 12205.5 is tested in the down leg. And then the high volume node of that down leg is tested again.