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Ranges in Play – Feb 25, 2021

Jobless claims on the horizon – our levels are the same -this is the last post of the week and I will be in full engagement and ready to work on Monday.

Thank you for your patience and encouragement through this very sorrowful time in my own life journey.

If we use the guideline that holding above the low into Wednesday gives us a low for the week being established, we should not break the current low of the week in play for the ES_F and for the YM_F.

THIS IS NOT TRUE IN GENERAL FOR THE NQ_F – (STATISTICALLY SIGNIFICANTLY SPEAKING)

I know it is a little tough without me at the helm for those of us that are a little newer and I will be back and in full swing on Monday.

Here are some images I want you to consider –

First, here are the Motive Wave custom levels of note in the ES_F this morning. Though the level 3920 is not noted, you’ll see heavy congestion there and the break below is going to be a trouble spot for buyers.

There is intense sector rotation out of tech and into financials and energy- both areas very depressed over the last year

Until they break above, we should see lower highs and lower lows back into heavy congestion. Our battleground remains 3900 – 3880 with traders holding the region near 3906 into the jobs numbers.

THIS IS THE BIG PICTURE IN PLAY – last night’s image

Remember your OODA loop – OBSERVE, ORIENT, DECIDE, ACT

  • What do you see?
    • This means -what is the current battle at play?
  • Where were the buyers last engaged if they were value buyers?
    • This means -where do we see the congestion that leads to a bounce?
  • Where were the sellers last engaged if they were value sellers?
    • This means – -where do we see the congestion that leads to a fade?
  • Who won the last strategic price battle- buyers or sellers?
  • Have we tested significant levels of support or resistance?
  • What is the relative trend?
    • This means – relative to the day at hand, who is forcing the most pressure on price?
  • Have you established risk relative to –
    • 1) the last battle won and
    • 2) the relative trend?

Big fight in GC_F worth noting-

The buyers passed the first test.

Images like the one taken last night in GC_F compared with the current price action remind us where ideal positions for entry sit in the time frames and heavy congestion levels.

This approach of looking for compression candles will give you strong opportunities for entries and help significantly with risk assessment.