Updated: Dec 1, 2022
*Accuracy rating update: 93% or 14/15 predictions correct*
Day’s theme: A lot of movement. An important price level is highlighted.
Behavior around the high: A sharp dip in the midst of sideways rotation around the high.
Behavior around the low: A notable drop to meet the low, likely a decline through multiple support levels or a gap down of some sort.
An opportunity to open up a short position off of a day’s high earlier in the day.
Another trade opportunity around midday to position yourself in both directions.
On October 24, 2022, we push the upper end of a range either in the pre-market or right around the open. There’s also some selling around the open. We then turn around to reuse a support level. In the first half hour, there’s a big move to the upside where we push the upper end of a range. We’ll see a day’s high at some point in the first hour and a half. That high is followed by a decline, which marks an opportunity to open up a short position. Midday, we have a move higher through a resistance level, followed by a breakdown through that same price level shortly thereafter. There’s a trade opportunity to position yourself in both directions just a bit after midday.
Around 2:00 p.m., we’ll see a trough followed by a big move to the upside out of that trough. That move to the upside forms a crest and another high for the day, and we’ll likely meet a new support level here, at least momentarily. This marks an opportunity to open up a short position. Between 2:00 p.m. and 3:00 p.m., we have a day’s low off of the previous crest. We then decline again into another day’s low toward the end of the day. In the post-market, we break down through a diagonal trend line that we rally along with increasing volatility as we move into the next day.