More Pain for the Russell 2000 to 1500?

10 окт. 2022 г.

Multi Timeframe Analysis

Hint: A massive bullish order block spanning 1500 to 1653 begs satisfaction. Price could linger within this range until all pending institutional orders are filled.

Bearish Narrative:

1. Bullish institutional order block about to be reached. Price gravitates to such market imbalances.
2. Multiple MACD, RSI, MFI bearish divergence signals on Weekly and Daily
3. 32, 41 and 44 stand as extremely powerful resistance levels
4. If the bullish Order Block is breached, next support stands at 1425
5. Russell growth capped by a bearish 21 EMA trendline
6. Putin threatens Kyiv with "even tougher response" in case of further Ukrainian "terrorist acts" against Russia. Read more on the Crimean escalation.

Await a confluence signifying a rejection from the bullish order block, then take a satisfying long all the way to the bearish institutional order block at 1921. From this juncture, we update the next forecast. Expect cryptocurrencies to decline further with the decimation of SP500, Russell 2000 and Dow Jones

Remember: life often disrespects charts so trade with caution

------

Market order position upon the confluence of valid entry rules on the 4H or 1H chart.

-=ENTRY RULES=-

Trading philosophy: Don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace on the 38.2%, 50%, 61.8% or 78.6% fibonacci back in the direction of the master trend.

Note: I use Daily/4H or 4h/1H market structures with wave analysis to prep for potential entries. The RSI , MACD and EMA indictors are confirmation for entries at the 4H or 1H timeframe

For ORDER BLOCK trades
When price reaches a bearish or bullish orderblock, ascertain the price reversal by means of
1. Dojis
2. Morning/evening stars
3. Several wicks.
4. Engulfing candles or three white soldiers in the opposite direction
5. Marbouzou in the opposite direction.
6. Break of trendline or fast EMAs

For SHORT:
4H chart should confirm that the bullish retrace had turned bearish in the direction of master trend. The MACD should have dropped below zero signifying a bearish environment. Price would have dropped below the 10 and 20 EMA . For good measure, check that the 4h and D1 RSI is below the 50 signal line

For LONG:
4H chart should confirm that the bearish retrace had turned bullish in the direction of the master trend. The MACD should have gone above zero signifying a bullish environment. Price had gone above the 10 and 20 EMA . For good measure, check that the 4h and D1 RSI is above the 50 signal line

Divergences:
The 4H, 8H and 12H chart can reveal hidden divergences on the RSI , MACD , Money Flow Index, CMFI, On Balance Volume and Stochastics. When one or more divergences manifest- be ready. Trend reversal is coming. My best practice is to wait for at least an RSI divergence on the 4H, then drop to M15 to see price shifting with a 50EMA aligned with the 4H divergence.

About me
I am not a financial advisor nor a signal provider. These are the opinions of a 20-year private trader in the legal profession as well as a businessman diversified in the tech and hospitality industries. My favored tools of the trade include wave analysis, price action on the 4H to Weekly timeframes and institutional order flow ( COT data).