Just sharing a chart I just posted on AGY thread...
Further to my previous chart I would like to add some further commentary surrounding weekly chart perspective and liquidity zones.
The weekly chart is often overlooked relative to the daily chart, however offers valuable insight not seen on the daily zone or smaller, and the weekly chart is typically the home of the larger traders.
As AGY, due to the m/cap, is CFD tradeable it opens itself up to liquidity pools (accumulated positions) ie. Traders who can and have take both long and short positions.
The First chart I post below relates to the price action between 9/2017 and 12/2017. Inset into the chart is some data from shortman (though I feel this doesn't include dark pools of liquidity as the move suggests there was a decent pool there more than whats represented on shortman). Notice the shorts got cooked on that particular occasion.
Now if we move further along the weekly chart we can see AGY putting in a new high but take a note of the weekly candle which was produced.....then we had a sideways consolidation with inset bearish price action cultimating into a big attack on the large long liquidity pool on the downside which was created. Overall a great week for the shorts.
However you can also see two very clear overhead liquidity pools now in play. And from my experience successful trading relates to targeting liquidity pools on all time zones....a concept which only became quite clear recently. Price transitions always from one liquidity zone to the next...
Now when trying to analyse the upside liquidity pools there is still a lag on shortman (T+4), and to be perfectly honest I am not sure how reliable the data is as there are always dark pools not shown.
But lets have a look at comparative weekly candle too see where we are at what similarities we can see.
The similarities are quite striking....almost bookends....and price on a weekly level often moves fast from these types of candles.
Just one more thing to add, a rehash of the last chart I put up.
Done in Heikin-Ashi candles (smoothed candles) so a clearer picture can be obtained. A little bit more depth than Hoots'chart and comments inset into chart- no Moving averages just a price action chart which in my opinion is the purest form of charting. Lots to take in I know and if anyone has questions of please ask. Below the Heikin ashi chart I have added a weekly chart with standard candles so you can see the difference and the strong weekly bar we just had adding just one more confirmation into the overall weekly structure. But I am expecting consolidation over the coming weeks met with heavy support at 21-23c and resistance at around 29-30c but positive fundamental news should see confirmation and break of the flag and targeting a new high in sept/oct/nov. Imho this is set up for a gas supply release in next few weeks and possible other news releases.
(20min delay)