Monthly XAO and FTSE are really interesting.
Tech, in your experience, would you expect the recent FTSE highs of 6861 (on the monthly) to be tested to a greater degree or do you think the price action at the start of august was effectively 'that test'.
P.S you're only labelled bias if you get it wrong.
I cant be sure.
But what I can say and see is that right now there is no real sustained push towards the highs of any bourse.
Had an email discussion with PAV and suggested that a position trade from here may take a few goes before it gets some breathing space.
IE The high is likely to be tested---or it may well already have been tested.
So for those who don't want to place a 100 tick stop (or so) the option is to keep setting the trade and suffering the frustration of being stopped out at B/E or close while we wait for a thrust lower to give space.
Everything seems to be rolling over so I will also be looking to get set.
To do so Ill be looking at a much higher timeframe'(Daily/Weekly) and using the index itself.
Ideally getting set short this week earlier was the play! (The day the FTSE dropped 100 Ticks and we/I were playing the wrong side!)
But not too late.
My immediate thoughts.
The weekly FTSE looks very much like a wave 1 of a possible 5 wave correction on the weekly
This is where we should be looking at timing.
Any test of that high would in my view be an entry opportunity.
Any thrust lower also the earliest available short play chance (NOW).
Stop at the top of the possible wave 1
Bit wide but if it goes no choice and should be able get on a lower wave 3 which wont re visit the high.