20 May 20220519 Next Day Analysis Gold
Posted at 04:52h
in Early Entry, Gold Trade Review, Next Day Analysis, Reversal Within IBR, Strength From Within IBR, Sustained Auction
2 Comments
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Premarket Prep:
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?
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.