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A wolfe wave pattern entry short at the top after three successive peaks.
Trading counter trend is quite scary in DAX. But you just have to execute the plan without fear.
Can you help answer these questions from other members on NexusFi?
Yesterday was a vicious stop run day.
The whole afternoon market drive incessantly towards the stops hiding behind last Friday's low.
After the initial low, the market maker has turned around to run the stop again.
See the absorption volume below the initial low.
That is the vicious bag holding pattern.
DAX has come off the highs since our last call based on the Wolfe wave pattern formation.
Now it is just above the London session low of 12580.
From what I understand from the market maker of DAX, I don't believe that they are going to leave the stop orders behind the session low untapped. It is so a-typical for DAX. Hence I am anticipating a stop run and test of the yesterday's value high at 12570, which also coincides with the weekly VWAP.
After yesterday's massive spring pattern, the ES has went in a bullish drive mode.
The globex session was extremely strong, already taking out yesterday's high. This is setting up a bullish tone for the day.
Hence the primal scenario is a open-test-drive opening. It is meant to auction counter to the overnight inventory which is 100% long. The VAH and POC are on my watch list.
YM has a better technical picture in my mind. I am watching the 24495, the prior resistance, to be the first level to be tested. Then followed by VAH @24462 and VPOC @24423.
It is highly likely that YM is going to fill in the TPO hole some time today.
Wow!
Have you seen it!
The capitulation climatic sell.
200 long contracts puked (forced to cover). Market then picked up from there.
Just like I said market sometimes has to fall first to liquidate a portion of the weak hands before it can be lifted.
Market is driving down incessantly.
It might look fearful for now, but the TICK is telling a different story -- the concerted selling effort is dissipating.
ES has traded back to VAL of the prior day.
YM has retraced much deeper than ES as the market maker pulled their liquidity out of the panic.
The central scenario is still that the prior day's low would be kept intact and the market is in a process making a higher low.
That is why it is necessary for the market to test the supply before lifting higher.
Though I admit that in a day of higher volatility like today, it is much more prudent to trade ES instead of YM or NQ. As the thinly liquid counterparts can do some crazy things.
