First of all we have note that this week the Economic Calendar is heavily-loaded on Wednesday, Thursday and Friday. Monday and Tuesday are lacking any High or Mid impact news drivers. When that happens we can expect consolidation days.
Basically we are have consolidated inside this range. We just slightly took out BSL and now price is returning inside the range.
Consolidation doesn’t mean you can’t trade. But you have to be a lot more nimble and versed in market symmetry. How could we know its going to be consolidating?
💎 We have an old NWOG in close proximity to our current NWOG.
YM took out Buyside when NQ failed to do so and was going lower. This our classic SMT divergence. Sick sister is similar, but not the same. There are conditions with a trending Market where the six sister opportunity will see a move that hasn't transpired yet on one asset or correlated market meeting or exceeding an old high or low. Because YM made a HH, in a symmetrical market, it will be reasonable to expect that NQ will go up and hit its High too. Now look closer…
We have failure on NQ to make a HH. We have also a very specific time of day (3:15AM-7:45AM).
YM took both Highs.
ES only 1.
NQ didn’t take any High.
This is where the Sick sister appears and how to use it in consolidating market.
We go to the weakest asset. The one that is “sick”. If it is really weak and can’t take out the highs, when the other assets did, wait for it to drop in Discount. 💎Look for OTE,OB and FVG in Discount.
We target internal range liquidity. No need to target external to be profitable. When you target 2 highs like that, you can put a partial on each one and 1 in the middle. Why is it better to target the internal liquidity? Because once price takes out those Highs there is a chance 💎it could want to rejoin what has been seen on the ES and YM.
Look at the red divergence line. Notice how much price dropped off on ES and YM. And yes they all 3 dropped. But NQ failed to take out the High when ES and YM did. YM was also able to clean up even the High created at 2:30, previous trading session London high. ES couldn’t do so, but it did take 1 out.