Four Hour Chart
The Four Hour chart is giving us a great macro view at the moment. We can clearly see price rotation and balance with Value area high at 71.47 and value area low at 70.60.
We are currently trading at the low end of value @70.79 with expectancy to rotate back up to the high end of value.
Note: Because markets do not go straight up and down expectancy is to see rotations (Accumulation) before price rises (or falls) again. This can mean one to three days of a rotating market on average.
Note 2: We had a heavy sell off Friday afternoon. Afternoon rallies and selloff's are usually indication of further price action in the same direction so we could see selling all the way down to 69.44, then 68.50.
My Expectancy on the day: Rotational market (Accumulation) with maybe a new low from Friday put in.
We are still imbalanced higher with no 100% pullbacks for creating a daily rotation. This is strong bullish activity so I caution shorts. If we continue to accept prices here then expectancy is to see highern pricing with first target at 71.50, 71.87, 72.70.
One Hour Chart
We have 100% rotation on the 1H (Hourly) chart. We can now look to trade VAL and VAH of the balanced area. We are at the top of value currently trading @70.87 with expectancy to rotate down to value area low @68.53. I will look for short opportunities to take the market down to VAL. If we struggle to see lower pricing then I will reverse early as we are in an imbalanced market on the Daily to the upside. Caution is to the down side but expectancy is still in place.
We are still imbalanced with no 100% pullback. We are now trading above value @ 70.05. If we continue to accept prices here then expectancy is to see higher pricing. First upside target is 70.84, 71.92, 72.70, 73.50.
If we can not hold here then expectancy is to see lower pricing with first downside target at VPOC 68.20, LVN 66.80 LVN 64.50.
One Hour Chart
We have completed a new 100% rotation on the day creating a value area at 70.52 - 69.69. We are currently trading inside value @ 70.05 If we hold here then expectancy is to see higher pricing with first upside target at VAH 70.53, then yesterday's High @ 70.94 then the break to 72.
If we can not hold here then expectancy is to see lower pricing with first downside target at 69.50, 69.11 then 68.50.
We are still holding the range on the daily trading just below value area high of 68.82. If we hold here then expectancy is to rotate back down to VAL @67.36. If we break and hold above 68.80 then higher pricing is expected. First upside target is 69.65 then a big slide to 74.
Nice auction process happening in the hourly chart. I was able to trade the long up now I am reversing position for the ride back down. This is an aggressive trade I understand because of the strong upward momentum. I will look to cut short and reverse again if the shorts do not pile in for the move down. Stay tuned for the results.
Great Trading Everyone,
We have a balanced market with VAL @ 67.27 and VAH @68.74. We are currently trading just under the VPOC @67.86 with expectancy to rotate back up continuing the auction process. Daily upside targets are 68.20, 68.75 then 69.65. If we break above 69.65 then we could see a huge slide up to 74. If we begin to sell off then first downside target is VAL 67.20, then back into prior value at 66 then VPOC of prior value @ 65.
1 Hour Chart
Below is an image showing you the trades for the day. I did not have to take too many positions today in order to make some cake. This is ideal for me. Buy value area low (VAL) ride it up to VAH...close the position then reverse and go short for the ride back down to VAL. Just a couple of trades and done for the day. Always try to trade around VAL and VAH because price action is very consistent around these areas.
One Hour Chart
Look for engulfing candles on the 30M chart at VAL if you are trading single lots. If you have the ability to scale in then just start buying Value Area Low. Below is a screen shot of yesterday's action. I started buying early the night before and bought all the way down the next morning. In the afternoon it unwound for a nice profit. You can see as well that I am doing it again this morning as I am long and looking for price to go back up in the afternoon.