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Ok back to CTX

The bar chart lays out the character of action

We have some higher volume bars that don't making much progress.

So sellers are meeting buyers

sellers are meeting buyers because the price has moved up to find them..

What is happening ?

The price has moved up already ( was there already good buy setups ? )

The current bars ? There are closes at the lows and some near the highs

So Buying is absorbing the supply

or there is distribution happening

what can make it clearer ?

What ever way you can do it

You have to look at comparative relative strength

here the P&F C. RS chart Vs the XJO

shows strength

I would with the available information

Say that buyers are absorbing the supply

I would be looking for an entry

on a breakout from strength from this zone of "absorption"

( Well what do you think will happen when available supply at the price is absorbed ? )

Or if there is weakness .. dependant on the Price Vol characteristics

I would go long at the 50% retrace

( remember trends are higher highs and higher lows, A higher low is a very good entry point  )

I am leaving aside the placement of stop

or other considerations..

Buy in the absorption area ?

The two scenarios will confirm the character of the action I have posited.

atm I do not have confirmation

supply can confirm a long position

by the character of the action as price reacts back..

Demand can confirm by breaking out

A breakout from an area of absorption

is a valid breakout less likely to be a trap..

The bars also have rising lows ( except the last one )

They overlap  ease of movement is not evident

one side taking out the other..

But look at the relative strength

I would judge the lower risk entry is on the reaction back

as a small selling wave is absorbed and dissipated

esp if the relative strength stays strong..

motorway