Market closed on a Bearish note on Friday , 02/21. Value Area moved higher but price closed below Value Low. This indicated weakness in the market, forming a Higher Value Failure reversal setup (HVFR). If price gets rejected at Value Low ( 1837 ), look for opportunity to go SHORT.

Higher Value Failure Reversal, Look to short market if price get rejected at VAL


As indicated in the above picture, Initiative Selling in the market moved price beyond IB Low. This created an ISRE (Initiative Selling Range Extension) Zone. Watch for price action in ISRE Zone ( 1836.25 – 1834 ). If price gets rejected here, expect price to move lower.

If price move above 1836- 1837 area, expect price to drift higher. Use this as support for entering Long trades.

If price breaks 1831.25, this will break the initiative buying activity from 02/20, indicating more bearish price action for the day.  Good probability for price to visit 1824 area if this happens.

IF 1831.25 is broken, expect price to drift lower. This will break the strong Initiative buying activity on 02/20.

Economic Calendar

Thomas Hoenig Speaks
3:50 PM ET




Posted in EOD Analysis