Friday’s session was all about cleaning up structure from Thursday's trend day. The profile displayed a b-shape, signaling long liquidation. I'm observing the main distribution of the attached 11 day volume profile.
Basically means that signs of stronger sellers were absent. A failed breakout from the prior multi-day balance should have triggered a much better downward move. The fact that this did not happen is casting doubt on the strength of the sellers.
I have read your stuff on twitter but never checked out the substack before. Great read. I found the 'mechanical' selling to be a fitting term for price action I haven't categorized before but its an apt description.
"The selling activity appeared to be mechanical"
-> What does this mean: "Trading bot algorithm?"
Basically means that signs of stronger sellers were absent. A failed breakout from the prior multi-day balance should have triggered a much better downward move. The fact that this did not happen is casting doubt on the strength of the sellers.
Wondering same.
I have read your stuff on twitter but never checked out the substack before. Great read. I found the 'mechanical' selling to be a fitting term for price action I haven't categorized before but its an apt description.
Great analysis. Helping me to see mine is in line. Thanks for all you do Smashelito!
I like the VIX context additions. 🙏
Thanks! You notes have really helped me a lot !!
First time I noticed your signature at the bottom. Cool. You are the best, Smashelito.
Are your vix levels correct? I thought at the high you want the vix to be higher and lower at the opposite end ? Thanks
Yes, the VIX levels are correct. If the last upside target is reached (4208), you want a lower VIX to confirm the strength and vice versa.