A trend up day across the board. A break of the balance is what creates such market conditions. Traditional indicators only confuse the traders and trap them on the wrong side. The indicators help to see a potential reverse but they don't provide a signal. Only price action and rejections of certain levels are the truth tellers.
The Algos are trend following Robo-traders. Usually, they don't turn around during day sessions. You can think about amount of money involved and why this is so difficult. If you study sharp reverses during day sessions you can see that they are news driven, when the short term sentiment is reversed. Without a power trigger such reversal is a low probability event.
The market is at a resistance level. We may see a correction during the overnight session. Why it is possible: a different session, different agendas, short term overbought condition. However, this is not going to change the sentiment unless we see a strong rejection and break of the existing market structure.
Stay nimble.
8/8/2019
The Algos are trend following Robo-traders. Usually, they don't turn around during day sessions. You can think about amount of money involved and why this is so difficult. If you study sharp reverses during day sessions you can see that they are news driven, when the short term sentiment is reversed. Without a power trigger such reversal is a low probability event.
The market is at a resistance level. We may see a correction during the overnight session. Why it is possible: a different session, different agendas, short term overbought condition. However, this is not going to change the sentiment unless we see a strong rejection and break of the existing market structure.
Stay nimble.
8/8/2019
