Review 3rd of February 2016

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1) XBP BB SR Levels: From the post reviewing the market action for the whole past week we extracted to key levels, 1910 and 1870. We can see how 1910 was twice, at the beginning and at the end the resistance that could not be trespassed. 1870 level was the support found after the first major drop. Today the BB SR Levels indicator has worked very well identifying the market turning points. The area between 1875 and 1880 had many supports and resistance levels printed. We shall remember this area for possible support/resistance for tomorrow’s trading day.

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2) XBP VWAP: Main VWAP level acted as a good support and resistance level in the mid session and -1 SD and +1 SD levels as good supports before and after mid day’s break. Keep always an eye on these 3 levels and try to take advantage of price bouncing off from them.

3) XBP Market Key Levels: Again and again the same couple of levels show the highest significance, Intraday High and Low and Open Range High and Low. Today were the lows of both levels the ones that played an important role.

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4) XBP Tape Speed: Lots of speed signals. When you see days like today, wait for clusters of high speed bars. The first cluster, at 09:30, signalled the end of the big drop, coupled with big volume blue bars. The last cluster though is signalling all those stops being hit. Big market players know where the naive players put the stops and then they play the market to hit them. This indicator helps you to see this type of action.

5) XBP Market Players: Green bars in 4,500 ticks charts are very significant. Always remember that. Today we had a tinny green bar, but which such a weight. The bar appeared around the 1875 level, and that very same level kept being the major support of the day. Coincidence? Nope.

Outlook for 4th of February 2016:

  • Key Levels: 1910, 1890, 1870
  • Direction: After today’s reversal day, with big money buying all those stops, we could have an up day.
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