The downside targets have already been reached, as I was unable to release this newsletter before the overnight session opened. 4595 is the short-term level of interest that buyers want to reclaim. I'll be monitoring whether the sellers can break and hold below 4575, as it could indicate a notable "shift in tone".
The Delta Finish is the pullback of delta from its max/min. This reversal bar had a max delta of +1242, then it pulled back from its max, to close at +569, so the Delta Finish was -646.
Translation: Big aggressive buying effort initially (+1242 delta), absorbed by passive sellers (price stall) and then aggressive sellers enter (-646 delta), essentially trapping the buying effort, confirming the reversal. Absorption by itself is not enough for a reversal, aggressive sellers need to enter to confirm the trap.
It's a chaotic market, what should we make of the noticeable order flow activity at 4540 and 4535? I'm hoping for the emergence of ARH as this is a session where ON and IB Low remain gapped downwards.
Yeah, combining the last three sessions creates a perfectly balanced profile. The short-term focus now rests on whether buyers can reclaim acceptance within this composite profile.
The downside targets have already been reached, as I was unable to release this newsletter before the overnight session opened. 4595 is the short-term level of interest that buyers want to reclaim. I'll be monitoring whether the sellers can break and hold below 4575, as it could indicate a notable "shift in tone".
Today's VIX Open = 15.70
LOL
Good timing, gonna be an interesting one!
I noticed in the order flow charts , the bars seem 17 ticks wide. Is that correct?
What’s the difference between bar delta and finished delta?
The Delta Finish is the pullback of delta from its max/min. This reversal bar had a max delta of +1242, then it pulled back from its max, to close at +569, so the Delta Finish was -646.
Translation: Big aggressive buying effort initially (+1242 delta), absorbed by passive sellers (price stall) and then aggressive sellers enter (-646 delta), essentially trapping the buying effort, confirming the reversal. Absorption by itself is not enough for a reversal, aggressive sellers need to enter to confirm the trap.
You can find more information here: https://youtu.be/0I48Wsgqzhs?t=1750
thank you Smash!
Brilliant analysis. I keep your data and place the levels on my platform.
It's a chaotic market, what should we make of the noticeable order flow activity at 4540 and 4535? I'm hoping for the emergence of ARH as this is a session where ON and IB Low remain gapped downwards.
Smash, can you explain the ETH Gap?, I know it happens rarely and causes volatility.
Yeah, combining the last three sessions creates a perfectly balanced profile. The short-term focus now rests on whether buyers can reclaim acceptance within this composite profile.