Congestion zone on trend line chart means we’re winding up for a big break out move. Plus updated version of Better Volume code.
Trend Line Congestion Zone (Emini 135 minute)
The chart above shows the Better Trend Lines indicator. Congestion zones are marked with white bars and indicate the market is resting and getting ready for a break out move. The 1,370 level will be critical tomorrow.
Exhaustion Volume & Test Patterns (Emini 15 minute)
My bias this week has been bullish. The chart above shows why. We’ve had a series of large volume down bars – exhaustion volume pattern – followed by low volume tests. This usually indicates Professional accumulation.
However, every time we’ve had a rally, selling volume has overcome buyers at previous resistance. We’ve now got a double bottom at the critical 1,370 level.
Don’t forget total volume today was 2.1 million and yesterday was 2.2 million contracts traded. That’s a lot of volume and didn’t result in much of a downside move.
Better Volume Update
Got an apology to make. In the last couple of posts I’ve used an updated version of my Better Volume indicator. The new version of the code uses the up-tick and down-tick data available within TradeStation for intra-day charts.
The Volume Indicator feature article has now been updated and you can download the latest version of the Better Volume Indicator there.
Good luck with your Emini trading.
