We have 13380 and 13390 both area's of overbought on larger charts. Seeing if that gets filled. Really took a nice loss on that one short what a squeeze, but back under control now.
Thats interesting. I have never thought to look at overbought price levels. What does that usually tell you?
Well long story short overbought under certain perimeters is actually a bullish sign where you want to remain long or even go long in certain setups. However, I mark those overbought levels(assuming they didn't get cleared in the back and forth) for a return to price level (means reversion). However, I wait for a sell signal for the overbought levels to be filled in(to control risk not just blindly going for the means reversion). Same way with longs I mark imbalances(oversold levels) on the way down and if they don't get filled in the back and forth (the price level) those become magnets for price on your next buy trigger. So here we have 13380 and 13390 finally cleared on NQ. If market has bullish intentions we generally will bounce off the overbought levels. Trading below them for too long is a bad sign for bulls.
Well it clattered right through that level and even the fib levels. Bloody glad i stayed short from 13600 now. If the ES broke the trend line, I would have stopped myself out
Yeah, it's just a minimal retrace target on a sell signal that general gets filled in unless the market is super bullish, that's all. Not designed to be used at support / resistance to be clear.
This is where U lay out ur fibs … strike zone 33% ~ 50% target window and you may want to pay attention to the time of day!!!!!!!!!!!!!