Quick question, does "HTF level" (for 7092) mean high timeframe in this case? I struggle to understand why 92 in particular unless it's simply a good support area that pushed price back into friday range...
Appreciate the support! 7092 comes from our own HTF model framework and is not derived from chart-based references. The key takeaway is that value building above 7092 is very bullish, targeting the next HTF level roughly ~300 handles higher. Failure to do so could introduce downside pressure, which would be notable given the poor structure below.
Keep in mind that since these are HTF levels, they should be treated as a broad zone rather than a precise level. For example, we had a HTF support level at 6446, which was traded through by almost 100 handles but quickly reclaimed the following day, marking the yearly low.
A Look Above and Fail (LAAF) occurs when price trades above a key resistance level but fails to sustain acceptance. It does not build value above the level and is quickly rejected back into range, typically leading to downside rotation as breakout buyers get trapped.
A Look Below and Fail (LBAF) is the opposite, where price trades below support but fails to sustain acceptance, leading to rejection back into range and upside rotation as breakout sellers get trapped.
Generally, LAAF setups tend to be more relevant in balanced conditions or in bearish/rotational contexts, while LBAF setups tend to be more relevant in balanced conditions or bullish/rotational contexts.
In other words, in trending conditions you monitor for failed counter-auction: LBAF in uptrends and LAAF in downtrends, both acting as continuation signals in the direction of the prevailing trend.
Thanks Smash!
Thanks for what you do Smashelito. You've really helped me understand the market a bit better day by day....
GRACIAS
I love your daily plans Smash, thank you so much.
Quick question, does "HTF level" (for 7092) mean high timeframe in this case? I struggle to understand why 92 in particular unless it's simply a good support area that pushed price back into friday range...
Again, thank you!
Appreciate the support! 7092 comes from our own HTF model framework and is not derived from chart-based references. The key takeaway is that value building above 7092 is very bullish, targeting the next HTF level roughly ~300 handles higher. Failure to do so could introduce downside pressure, which would be notable given the poor structure below.
Keep in mind that since these are HTF levels, they should be treated as a broad zone rather than a precise level. For example, we had a HTF support level at 6446, which was traded through by almost 100 handles but quickly reclaimed the following day, marking the yearly low.
How can I contact you for more detailed understanding of what constitutes a look and fail and what constitutes a hold?
You can contact me via my website: https://smashelito.com.
A Look Above and Fail (LAAF) occurs when price trades above a key resistance level but fails to sustain acceptance. It does not build value above the level and is quickly rejected back into range, typically leading to downside rotation as breakout buyers get trapped.
A Look Below and Fail (LBAF) is the opposite, where price trades below support but fails to sustain acceptance, leading to rejection back into range and upside rotation as breakout sellers get trapped.
Generally, LAAF setups tend to be more relevant in balanced conditions or in bearish/rotational contexts, while LBAF setups tend to be more relevant in balanced conditions or bullish/rotational contexts.
In other words, in trending conditions you monitor for failed counter-auction: LBAF in uptrends and LAAF in downtrends, both acting as continuation signals in the direction of the prevailing trend.
Cheers
Thank you as always!