Review of market action for the week of 8th to 12th 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 Bulls and Bears Support and Resistance (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.
Key levels identified:
(1) 1868-70: Last week’s close and this week’s top. The top came on Wednesday and marked by loads of volume. The market rallied at the opening to reach the 1868 level where big volume entered the market which made the price pop to 1880 and fall after that. The action is clearly visible with the 3 main indicators. XBP BB SR Levels marks a resistance, XBP Market Players paints blue and green bars signalling big volume entering the market and XBP Tape Speed has a high speed purple bar at that moment, showing a sudden acceleration in the tape.
This 1868 level was as well a previous support/resistance level in the past weeks as well.
(2) 1810: The bottom of the week, and what a bottom! On Thursday the market reached this level to see big players entering the market, seen with two green bars in XBP Market Players, and shortly after there is a strong acceleration in the tape (purple bars) and blue high volume bars, that make the market bounce off from this level. This is extreme action and quite unusual in its scale.
(3) 1832: Minor support and resistance level during the week. Good to keep in mind to profit from some bouncy action around it.
Key Levels for next week: 1868-70 and 1810. As minor level 1832.
Recap from last week’s review: 1870 level was identified last week and again this week.