Generally, two consecutive market periods tend not to duplicate their behavior. Differences can be overt in their opposite direction, or subtle in their different slope
Setups are price patterns that identify specific market behaviors with highly reliable outcomes.
Aggressively entering and also exiting a Running Correction forms the first 3 stages of a 5-stage pattern, which then forecasts the session’s next 2 turning
Compare the session’s first two 15-minute windows, then the first two 30-minute windows, to identify specific influences on the morning’s price action. Trending or
The price action that triggers a pattern is called a breakout. The pattern can be comprised of sideways ranging price action, or a trendline. Most
A close-quarters double bottom or top takes roughly 10 minutes to form. It measures just wide enough that its two tops or bottoms don’t overlap
A signal generated during the session’s first hour that can identify when the balance of the morning is likely to fluctuate choppily and narrowly, making
position of strength / weakness Study the setup’s historical occurrences here: This setup has occurred
Sometimes a session ends with no attraction left in-play above and below, but in a range that has room to fluctuate. The next session often
A consolidation’s breakout may extend to a 61.8% range around the pattern without yet earning any confidence in being able to absorb a reaction back
When the market opens at a different price than where the prior session closed, this forms a gap. This matters to viditrade’s analysis if the
The weekend’s impending illiquidity will affect the psychology of market participants on the week’s final trading session. This is equally true before a long holiday
On Friday, trends that exit the afternoon bias window beyond the noon hour extreme then often continue to new session extremes into the close. This
Closing at a new trend extreme on Fridays suggests that strong-handed sponsorship does not expect the trend to be challenged. An immediate reaction may still
Gapping open in the multi-session trend’s direction, and then extending through the morning, might then spend the balance of the session only hovering around the
Headlines impact price action, and are artificial catalysts (not organic catalysts). Their immediate effect on prices is often retraced by at least 61.8%, and often
Pre-open late break: When prices stay within an existing range overnight but attempt a breakout 60-90 minutes before the open (8:00-8:30), this is likely to
Especially on Fridays, aggressively testing relevant support or resistance during the first-15 at 9:45 can establish direction for the morning (or even for the session),
Steep, prolonged trending that takes 3-minute RSI into overextended territory (overbought, or oversold) can persist for a prolonged time. It is very dangerous to bet
A price pattern that appears during multi-session trending that identifies its reversal. It is a daily bar that gaps counter to the prevailing trend, and
A trendline can be drawn to bisect the trend’s actual extreme, connecting its pivotal high with the next lower high, or its pivotal low with
Of three afternoon timing windows — bias window exit, final hour entry, and proxy window — specific combinations can reflect strong-handed sponsorship gaining traction with
A single, continuous overnight trend often attracts either reinforcements or countertrend sponsorship in the first 15 minutes. If either of these things happens, the balance
The session-long rally/decline setup identifies within the first-15 minutes a session that is likely to trend throughout. Each timing window with only one exception will
A series of 10-11 consecutive sessions of new extreme closes can stretch sponsorship to either snap back or extend sharply. The sequence is allowed 1-2
During expiration week, price action as of Wednesday’s close combined with similar behavior Friday afternoon can predict the direction of an aggressive move Monday morning.
It is rare for a trend to develop convincingly and yet still aggressively reverse direction as convincingly, but this vulnerability is greatest on Wednesdays. And
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