Identifying Price Rotation from Internals

Internals may be used to identify range days as price action is being evolved.  Spreads usually may have a divergence in top and bottom indicating no clear direction.  TICKS will also hit 600 and -600 in succession indicating lack of market direction.  Price may continue to drift in one direction with low volatility during such days or rotate around PVP / VWAP.

Spreads with divergence at top and bottom indicating lack of direction.

TICKS made 600 and -600 with each peak. Eventually pullbacks got shallower and price had a slight upside.

ES was range-bound in the morning and gradually drifted higher in the afternoon. Eventual upside bias was obvious from internals.

 

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