Big Mike's Trading Blog

Day trading futures, discussing money management and trade management techniques, and more

More Price Action Discussion

Come stop by the forum and join the price action thread.  Here are some recent discussions and charts...

Below are EUR/USD remarks from yesterday.


Below is a CL workspace.

Right is entry chart (6 range). Top left is 12 range, bottom left 25 range.

What you see here is what I like to call "hammered dog shit". It's a highly technical term, use with caution.  The 6-range on the right looks like something exploded, and it looks and smells quite nasty. Price is ranging between 76.00 and 76.30. That's a death trap for many traders who get whipsawed.

Why is this happening? A few things. It's Wednesday, inventory report, etc etc. Sure. But also what is price telling you? The 12 range has a LOT of problems at these low areas. The 12 range also has a pretty clearly defined wedge with a few consecutive LH's.

The 25 range also shows a lot of consolidation at this price area. We're waiting for something to happen. Something will happen, and we'll either break through the wedge and make a HH+HL, or we'll breakdown the bottom support area and make a LH+LL again. I prefer to wait and then respond when that happens, and not trade in the middle of it.



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