Review 12th of February 2016


Trying a new format today to do the daily reviews. My aim is to write shorter entries that are easier to understand.

Key moments of the day:

(1) The opening session (8:30 to 9:00) move the market lower to go and close the gap with the previous day high. Support visible with a double signal, the first in the XBP Bulls and Bear Support and Resistance Levels (XBP BB SR Levels) indicator by printing a support, and the second signal in the XBP Market Players indicator with blue bars revealing big players entering the market.

(2) The market finds support in main VWAP level and goes higher hitting the stops placed behind the open of the day level and 1850 level. You can see the support level printed in XBP BB SR Level indicator, the big volume blue and green bars buying the market and the purple high bars that indicate a sudden acceleration of the tape, which most probably was due to those stops being hit.

(3) Key level 1846 flipped from being a resistance at the opening to become a support. Blue bars appear again, showing how big players enter the market to push it higher. Special mention to the green bar that appears at this moment. Remember that green bars only appear when that bar has the highest volume of the day. The later they appear in the day the more significant they are, except if they appear at the very end when this unusual high volume is due to traders closing positions before the end of the session. Also, see how the exact level that acts as support is the Open Range High (OR H in purple). Open Range High and Low are quite often reliable support and resistance levels during the day.

(4) 1855. This level has been a key support and resistance level the whole week, and today it has been crossed on the upside and with 2 blue bars and 1 green bar. Add to this a flip on the market forces, from resistance to support as is shown by the XBP BB SR Levels indicator. A key level to key in mind next week.

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