<aside> <img src="/icons/reorder_gray.svg" alt="/icons/reorder_gray.svg" width="40px" /> Building possible scenarios for next week. Wick sauce. CPI effects on the market. Daily and weekly levels. Difference between NWOG higher or lower. / Liquidity voids / 3 Drives pattern /
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You want to be very very careful and don't participate at all on Tuesday prior to CPI. After CPI hits there's nothing wrong with going after whatever remains in terms of liquidity or imbalances but prior to that ,you don't want to do that.
✍This is relative to the size of the candle high to low range. Many times that type of low, with a short and stubby wick, will get probed without going through it.
Long wick gaps are barriers .The instances when prices goes only to .25% of the wick are real hard line indicator that you are in a very bearish market, because generally you want to see price reach for C.E.
💎If a candle’s high becomes the C.E. of the following candle wick, then the next candle won’t even reach for the C.E. of the second candle.
When you're going lower in price and you're expecting it to deliver to a discount objective or Target you're looking for up close candles to provide resistance and any fair value Gap really keep price at Bay from going higher and you want to see the low of the FVG or C.E. be the defining boundary.
You want to see that it sharply moves away with with speed. It doesn't like to hang around there. if you have those signatures while you're watching price print lower you are watching a Sell program deliver and Order flow is bearish.
When we talk about Risk ON/OFF, this doesn’t mean that every tick higher on DXY, will be met with tick lower on other assets. Sometimes you'll have that little crack in the correlation where it can be confusing which is why you want to have inter-market relationships and analysis in your trading.
Lets assume for a moment that DXY does go higher. CPI number causes the dollar
to rage higher and index Futures to drop hard for Forex pairs to drop hard against the higher dollar.
That would cause GBP to attack the 2 Sell side liquidity pools below.
