Market retreats to 20 period EMA after making new highs (for long positions)/lows (for shorts) with ADX (14period) >30. Some people use the 20 period SMA . Projection is a retest of the highs. Trailing stop. ***Failed grails tend to move (painfully) in the opposite direction.
Where do you think this will bounce too on monday? I'm in a bit deep
AtticusRex
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@eeasyian0, The setup I posted is invalid beneath the 20 period EMA (12.08 atm). 1. Traders should have been stopped out below that level (± a few ticks for volatility) or 2. Buy a break to the upside of that level if it moves up from below. In my experience, when this setup fails it moves severely in the opposite direction. Support levels below (±): 11.40, 10.50, 9.80 ± 5-10ish ticks for volatility.
When all the shorts are squeezed out there buying pressure disappears and a "vacuum" is created below.