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20220519 Next Day Analysis Gold

  • Alfie
    Posted at 11:24h, 08 June

    Bril­liant analy­sis. What’s the dif­fer­ence between strength with­in the IB and weak­ness with­in the IB as a set­up? Is it just one is short from Sup­ply with­in the IB and the oth­er is long from Demand?

  • T3chAddict
    Posted at 12:13h, 08 June

    Thanks. Great question. 

    That is cor­rect. Although this is not the best exam­ple as my notes indi­cate and hence I did not take a trade based on it. I strug­gled find­ing the right sup­port­ive price action, pro­file read­ing to sup­port the devel­op­ing nar­ra­tive. And when in doubt… 

    Usu­al­ly a Strength/Weakness From With­in IBR hap­pens when there is a Wide IBR (wider than 3/4 ASR) indi­cat­ing pos­si­ble respon­sive activ­i­ty. In this case it was the open with­in val­ue indi­cat­ing pos­si­ble respon­sive activity.
    Price extends IB and then pulls back with­in IBR, then finds strength (long) /weakness (short) at a SD lev­el before con­tin­u­ing the direc­tion of the extension. 

    In this case there was no exten­sion of IB first and one could argue this was a rever­sal trade tak­ing D1 QLo as a direc­tion­al cue ie. long. Fur­ther ambigu­ous cir­cum­stances include the open with­in Val­ue and revers­ing at VAL. Suf­fice to say this is not a text­book exam­ple of the Strength From With­in IBR setup. 

    Have a look at some oth­er exam­ples and let me know if you have more ques­tions on it.

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