It's helpful to think of breakout moves in stocks as breakaway moves. What markets are doing is breaking away from one level of value toward the establishment of another.
Note how we found a bottom in very early trading around the 878 area in the ES futures per the Twitter comment. From there we found volume lifting offers, as we broke away from the Volume Weighted Average Price (red line) and established an uptrend. Once we're in a rising VWAP with rising prices and strong Cumulative Delta and Cumulative TICK, we can then anticipate moves to upside price targets, including prior days' highs and R2/R3.
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1 comment:
The breakout volume was good, but the rest of the day followed with very, very sub-par volume... only to spike like a demon in the last ten again.
I took a few glances at the intraday volume you updated and yet- today's volume was on track with what you wrote.
However, I cannot help but notice the weaker volume since April began, compared to the months before.
Imho, either the market is transitioning into a new phase or this entire 'breakout' is not quite valid.
Until proven otherwise, I'm 'riding this bandwagon', leery of the 'bandits' out there and ready to 'defect' anytime- not comfortable with the lack of company.
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