Wednesday, January 22, 2020

HSI Analysis Jan 23


28. Price open below previous close, Range 204 in 5 minutes with big volume matched the 01.30 bar. Bar with big low tails close higher. Unusual behavior when market open indicates the bar is probably the most important bar of the day.

27. Inside bar as expected, nothing to do.

28. Double Inside Bar forming before 01.30 bar, be careful with false breakout.

29. Engulfing Bar 01.30, usual pattern. Can trade after a false upside then Short after bar 28 break.

30. Another inside bar, Stops will be at bar 29 high. Profits will be at low of the day.

31. Another opportunity to short after bar 30 breakup fake.

32. Stopped out, partial profit, or small losses in this bar. Big reversal bar.

33-35. Another inside bar then fake low break. The low also near the low of 29 which is important bar. Opportunity to buy at 33 high.

36. Partial profit at break high.

37-42. This is consolidation zone looks sideways but actually very important area. After break high no continuation, indicates weak buyer. This is where psychology kicked in. Bulls at first defend their entry point on  28053 area 3 times!! Bears is not yet entered but Bulls already troubled.

43. Bears enter the market and Bulls already dump the 28040 fortress move the defense at 27990 area.

44-48. Bull succeed defending the 27990 temporary and price move to 28030 area again. But there is no more buyers here. 3 times is too much. Opportunity to short at 28030 area.

49-end. Bear winning the war break low and yesterday low. Take profit at 28 low and/or another partial at weekly low.

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