Review of market action for the week of 2nd to 5th of February 2016:
To review the action of the whole week we use a 13,500 ticks chart and reduce the indicators to only XBP BB SR Level Upper, XBP Market Players and XBP Key Market Times. We recommend to keep this screen always open during your day trading to give you context of the action over the span of the last 5 trading days.
XBP BB SR Level Upper help us to identify the levels where the market forces flipped from one side to the other, for example a red line marking a support is when the bulls take over the bears. XBP Market Players highlights with blue and green bars the levels at which the big players have entered the market. With both these indicators we can easily identify the main support and resistance levels based on volume action. XBP Key Market Times help us to split the intraday session from the normal trading hours session.
1) 1920: Acted as a support on Monday but then it turned as a resistance on Thursday and remained the resistance of the week. We saw on Thursday a high volume green bar together with a resistance level that was repeating from the same resistance on the intraday session.
2) 1890: Worked as a support on Tuesday and intraday session on Thursday, and as a resistance on Wednesday. It’s key to see that on Wednesday this level was crossed with 3 blue bars, one being quite big.
2.1) 1890: As a confirmation that this is a key level, on Friday we saw how 2 green bars and 1 blue bar appeared on this level. We are not the only ones thinking that 1890 is a key level and these bars confirm our hypothesis. Keep an eye on this level.
3) 1870: A key level already last week and again this week acting twice as support. On Wednesday with a green bar together with a support and on Friday with 4 blue bars and a support. If there is a level to watch next week is this one.
Key levels for next week: 1920, 1890 (minor) and 1870 (mayor).