Review 2nd of February 2016


1) XBP BB SR Levels: In the post reviewing the overall action of last week, we highlighted 2 key levels, 1910 and 1870. 1910 has been the key resistance level of today. The BB SR indicator rendered resistance levels again in that level, which confirms our observations last week.

As per new levels rendered today, the key one has been 1901. But we always a bit skeptical of these round, or near round, levels. Our indicator is based on volume and price, and for sure there was a lot of volume near 1900 level. Yet, it is good to keep it in mind for future days.


2) XBP VWAP: Main VWAP and -1 SD levels acted as resistance during all day. Even during the second half of the day the price seems to follow a channel between -1 and -2 SD levels.

3) XBP Key Market Levels: Open Range Low, near 1901, acted as key support and resistance level any time the price approached it. The more I see these two key levels, Open Range High and Low, the more fascinated I am about their importance.


4) XBP Tape Speed: The high speed bars right after 11:00 o’clock show the tape action that occurred when the stops of many traders were run over by the market. The last cluster of high speed bars appear right at the bottom of the day, when the big players closed their positions, happily after getting all the small guys (us!) money.

5) XBP Market Players: Not very easy to read signals yesterday for this indicator. You can see all the volume surrounding 1900 level. For me the key 2 reads are the two highlighted ones in the second half of the day. The green bar could mark big money shortening the market, which always initially sends the market in the opposite direction, and the bunch of blue bars at the bottom of the market that appear together with the tape speed signals.

Remember that big volume + high speed = key level in the market, normally a top or a bottom if these signals appear after a big move.

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