The TradingEdge

[jxyzobrien]

Market nuance the open
part 2
what is the market trying to do and is it doing what is normal market behavior.

65% of the time a re-adjustment to open inventory happens.
35% of the time it has juice and does not do adjustment.

If market futures are mainly long or short market adjusts and goes
in the opposite direction. Only 25% of volume is pre market
so pre market is often wrong.

Where did the market reject price and how is energy to get to
the next inflection point.

If lows rejected:
If close to value area low it wants to travel into value as long
as breath/tics are not bad.
Then on to VPOC (volume point of control), value area high
and RSI top.

IF highs rejected and just above value area high return to value
area high and then to lower vpoc then value area low.

Again look at breadth. If breadth is 1.xx move is weak choppy
is very easy to move it around and often trades on lower time
frames meaning 1 min and 5 RSI 30, 70.

Weak breadth happens often when the market is in balance
just going back and forth. Market just goes from balance range
to excess and out of balance range. So the big moves will be
after days of balance.