Market Analysis and Trading Strategies

Now, the question is going to be this. Why did I pick this candle?

Why was I concerned about it when it went above it?

And why did I close the three contracts when it went above that?

How did I know it was reversing basically what you're asking?

If you look at this sell side liquidity pool we have outlined here,

the old lows, we went below that. So sell side's been tapped here.

Then it went lower and created a relative equal lows here, creating what?

Another level of sell side below that. It went below that.

So we now have another low formed here. What's resting below sell side?

People are always trying to buy lows.

They're trying to pick bottoms. So the sell side gets taken once more here.

And then this low gets taken here. So notice what's occurring.

We went below sell side here, here,

and here without moving very much.

So after we've taken buy side liquidity here,

it should have been off to the races and went lower.

And this should have capped price on the upside because it's an up closed candle.

Institutional order flow,

my rules for teaching that to you is if we're bearish and order flow is bearish,

this should have stopped price like it did here.

It should have maybe touched it one more time here or just bumped above that short

term high and then went aggressively lower. It did not do that.

Because we took this up closed candle out,

that was problematic because we had multiple levels of sell side

taken below the original sell

side liquidity that was outlined at the beginning of the day on Twitter.

So in short, what should have happened was we ran the buy side here.

That should have been the high of the day. And then it broke lower.

But because it took out this candle here,

after taking multiple levels of sell side, what's the algorithm going to do?

Seek buy side. Where is it now? Above this high here.

So it's doing that run here and then back above midnight opening candle price.