12-30-22: Happy New Year. Week Overview and How to Assess Failed Breakouts.

2022 riddance.

This is a week review. Each day will show if the bull/bear scenario triggered and list the same levels from the guide that day. For simplicity support/resistance above and below where price interacted are not included.

Above is the week in one shot with the bull/bear cases overlaid on relevant days. As usual there was quite a bit of consolidation preceding each move which is much more actionable upon breaking. The same 3830 zone has been used all week for reclaims as well as a path to test lower once broken.

Price action is often dictated by the interaction between multiple channels and which channel price tends to adhere to at a given time. This is likely due to strength of a given level. This concept forms the basis of many TA patterns such as broadening wedges, which are typically two competing bull and bear channels. For example price has been ping ponging between a large wedge for the better part of two weeks. Despite that there are still intraday setups from smaller wedges within …