Mar 25, 2022 • 3M

Day Type Audio Review: $NQ futures Liquidation break into ONL and 10 day trough from yesterday

1700 CST comments on a 10 day trough defended from yesterday after harsh liquidity break

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Derek William Frazier
At the end of every trading day I focus on the type of day that developed and how cycles apply to the trading that was done. I also look ahead and see how the market is transforming as I make hypotheses on cyclical activity. I then look forward to the next trading day and week using sector analysis.
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So basically there was a break from the overnight value area down into the overnight low (ONL) from today all the way into yesterday's trading at the break out area from 9:30 CST …

traders found value there because the liquidation break wasn't severe and it wasn't the market breaking down it was just people that were too long and they got TESTED… to see if there was liquidity down there at 14570. The thing that you want to keep in mind is that yesterday was a 10 day cycle low trough so price is not going to break through 14440 on NASDAQ THE DAY AFTER this 10 day trough!

Thats the true power of your cycles work. To see the defensible area that you can statistically manage risk against. Wouldn’t it be nice to know that the likelihood of breaking that so easily is low?

Traders are gonna defend the top of the value area from yesterday's overnight high (ONH) all the way down to the lows of yesterday which is the 10 day trough formation…

therefore you can expect that today… even though this l…

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