<aside> <img src="/icons/reorder_gray.svg" alt="/icons/reorder_gray.svg" width="40px" /> DXY,EUR and ES Daily chart analysis and next DOL / Risk ON-OFF/ Breaker Sauce / Anatomy of FVG / Rejection block / Project STDVs

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What are the next Draws on Liquidity? đź”˝

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Volume imbalances are inefficiency in price delivery. The algorithm will refer back to it. We still haven't seen a candle body inside of it so it remains inefficient.

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We use the Daily chart to find our key levels. The weekly chart is used to determine the expansion Higher or lower, distance, magnitude and what do we reach for on the W. For next week we expect the expansion to be delivered up and to reach for the Volume Imbalance. It doesn’t mean that it will happen right away on Sunday, but somewhere throughout next week.

If we look closer, we can see that we have Relative Equal Highs inside that VI. We know that retail buy stops reside above them. There are 2 types of buy stops over there:

  1. Buy orders of the people that want to go long on a Breakout above that “resistance”.
  2. Large hedge funds that protect their short positions.

This is a big liquidity pool with large volume of Buy stops. Not some minimal volume that would come from retail traders.

✍This is where analysis starts, but we don’t use it to trade the dollar. We use that insight to trade other assets based on the risk ON/OFF parameters.

You need to know the bigger picture. Sometimes when you are day trading, you might be too zoomed in and you might miss or get surprised from a move that’s happening on the HTF. W/D will tell us where are the biggest odds for price to go. That’s our number 1 goal when we analyze.

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What is a Rejection block actually? If we are bearish on DXY (which we are not), if the market goes to an old swing high and trade to and through the highest closing price and creates displacement. Just like the 22 model. STL pierced and with FVG above it. That’s how we would use it to go short. But since we are bullish, expecting price to reach for the BSL, then Rejection block will act as target. That means that if are in short position on other assets, we better take partials off, because it might consolidate for a while. But once we go above the RB, what's our next target?

C.E. of the wick. When the new week open, we would like to see it gap above it or just at it.

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Beyond the C.E. we have the high of the wick.

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