Thread by @ivs_futures

#NQ_F #NQ Post CPI landscape. Long setup into continuation, cover at the top of the balance - multi day resistance. A new bull flag is being formed.

Scenario of double top is in play, posted earlier in the morning.

Structural breaks during the upside move keeps the buy side in control. A rejection of the previously accepted level may offer a short setup. Double top first rule.

You can't make this stuff up :) Weekly projected zones in play to the tick despite a volatile move up. A reaction first than a breakout. Now a short setup with a tight stop anticipating a breach of the previously accepted zone.

the previous day high seems a good target.

The short setup has worked. 100 handles. It took awhile + noise.

This is the play. From zone to zone.

When the market makes a quick and exhausted move a continuation trade is less rewarding. Seeing a rejection of a previously accepted level is cue for a contra trade setup.

However, the next inflection level is used as a target. In this case the previous day high mentioned in the previous tweet when the short was opened.

when a previously accepted level is rejected it flips a short term sentiment. The next inflection level is a place where the opposite side may flip it again. since the outcome of the inflection level is not known it is better to book the profit and reassess.

a simple rule to apply is to add or subtract 100 handles from an inflection level.

as of now, the action is within a new bull flag. Edges of the flag are potential places for entries/exits

for day traders understanding a short term sentiment and tracking it correctly is critical. analysis does not pay the execution does...

trading a news is usually not recommended. the speed of the machines is their advantage. a retail trader has an advantage too. seeing the market structure and understanding what are the critical levels for both sides allows to put a limited order with wider stop.

In the pre CPI action the market broke a consolidation area. this is a bullish sign. The market showed its hand. Could've been a fake - sure. But that thinking is wrong. Trading to win vs to avoid loses. It is better to go with what-should-happen.