A lot of Noise in QQQ, Where Can We Find Clarity?
To help understand the technical analysis. I've also added a volume profile to the right side to show how many contracts have traded in a certain area.
When there is low liquidity at certain price levels, price can easily jump that price into a new range, in our cases we created a few gaps. What happens is usually price will retrace to those levels to fill them out.
It's really important to know where price traded most. Price will often find a way back to that place.
Now the chart,
There are several things going on with this chart. It's kind of noisy but I thought it was necessary to include all lines I thought could potentially be in play.
There have been 3 areas where price has absolutely struggled and then sold off. We are at that same level again right now. Right now we don't have a lot of support below us until about 290 on the 4hr time frame.
On our MAD indicator below, it tries to indicate a trend change when the line begins to towards back 0. I've also listed zones that historically the line has respected as support and resistance.
Our Mad indicator is not only showing a possible trend change, but we in a territory that looks pretty dangerous to be in.
For the bulls, If we can break above 294. I'd like to see them test that as support and start building volume in that area.
For the Bears, I'm looking to refill those gaps. There is too much space on the chart to be comfortable with.
When there is low liquidity at certain price levels, price can easily jump that price into a new range, in our cases we created a few gaps. What happens is usually price will retrace to those levels to fill them out.
It's really important to know where price traded most. Price will often find a way back to that place.
Now the chart,
There are several things going on with this chart. It's kind of noisy but I thought it was necessary to include all lines I thought could potentially be in play.
There have been 3 areas where price has absolutely struggled and then sold off. We are at that same level again right now. Right now we don't have a lot of support below us until about 290 on the 4hr time frame.
On our MAD indicator below, it tries to indicate a trend change when the line begins to towards back 0. I've also listed zones that historically the line has respected as support and resistance.
Our Mad indicator is not only showing a possible trend change, but we in a territory that looks pretty dangerous to be in.
For the bulls, If we can break above 294. I'd like to see them test that as support and start building volume in that area.
For the Bears, I'm looking to refill those gaps. There is too much space on the chart to be comfortable with.
