Weekend Charting & Chat, page-5

Weekly #ASX200 Orderflow Analysis:
#ASX200 broke out of a huge balance zone (5808 - 5967) which we were in since mid July. The range provided great mean reversion trades for a couple months and it was a swing traders dream. Looking onwards, our market has been "one time framing higher" since profile #1 and we have not made a lower low on the daily since 02/10/2020.

Profiles #5 and #6 are indicative of a balanced profile and are an indication of acceptance, after the week we had to see price acceptance at this level is a promising of further momentum. A big tell, for me at least, to the incoming rally, were the seriously large inefficient gaps left through the first week of October, inefficiency is an indication of sentiment change.



Zooming in on the action (#5 and #6). #ASX200 over the last 4 sessions (2 days) has had over lapping value areas indicating building of value and balance with very little action above 6106. Our most recent RTH session had both a poor high and poor low, but specifically the low of the RTH session being a weak low that turned at a key technical level being the value area low of the furthest most left profile. Often weak and poor low/high areas represent structure that needs to be repaired and is often re-visited and blasted through.



After our trend day on Wednesday, it was very easy to looks at the daily profile and envision a "P-shape profile" with no initiative buyers at the top of the range and assume downward momentum, but breaking the one day into its two sessions, you find a "trend profile" and a "B shape" profile; where the B shape profiles often lend themselves to high price migration the next session.




Looking to the weak ahead: #ASX200 Weekly Overview

Weekly Orderflow PVT is 5992.

1. All dips to be bought as long as no daily close below 5992 targeting 6200.
2. Daily close below 5992 leaves #ASX200 very vulnerable to 5967 which is the upper band of the balance zone. Drifting back into the balance could bring the lower end of said zone.
3. Flow Zone into Monday remains at 6106. Bids above open up 6122 and 6157 (Daily Trade Plan coming monday morning)