Lets Talk Price Action Setups

Typically when I spend time tweeting it’s because I have an intention to write about setups later. This always seems better when the setup is identified before hand so it doesn’t feel like hindsight analysis. Here are a few setups over the past few days and the logic behind them:

Case 1:

This is the bull scenario for 4-27 as written on 4-26:

“Both Bull scenarios target 4100 and 4127 but the second is much cleaner and thus more preferable. IF price reclaims 4127 by breaking it solidly and then flipping the resistance to support with a bounce the short term low is likely in and we head to 4166 minimum.”

This one was straight forward price had been in consolidation. When price makes a large reclaim, especially one that involved a significant multiday liquidity dip (Monday and Tuesday) and begins squeezing the largest likely target is the opposite side of the channel reclaimed.

The text box shows price action on 4-26 which was consolidation at the time. The market runs on liquidity grabs and …