Updated: Sep 27, 2022
*Accuracy rating update: 100% or 11/11 predictions correct*
Day’s theme: An important resistance level is highlighted. There’s also an important piece of news that comes out either overnight or early in the morning.
Behavior around the high: We’re range bound near the top of a range at the day’s high.
Behavior around the low: The low will form when there’s profit taking from overbought territory on the RSI.
I’m advised to trade around a fast, sudden move higher.
On August 4th, there’s a breakout in the pre-market followed by a decline moving into the open. At the open, we have the beginning of a rally marked by a big move to the upside. In the first half hour, we attempt to establish support, however it doesn’t quite turn into a new support. Between roughly 11:00 a.m. and noon, there’s a completion of a bullish trend. From noon to 1:00 p.m., volatility starts to pick up steam. We then have a fast, sudden move higher marking the end of a period of decline between roughly 1:00 p.m. and 2:00 p.m. Between 2:00 p.m. and 3:00 p.m., there’s a decline to and through a support level. We then come back and reuse that support level.
Toward the end of the day, we have a prominent high or crest. There’s a prominent low toward the end of the day as well in the form of a sharp dip amidst sideways rotation. The dip forms after an unexpected failed attempt to break through resistance, followed by a decline through an important support level. Be cautious of increased movement and volatility in the last hour and near the close.