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Assessments / Blog 2017-11-16 ES #F Increased Volatility Our down side target was reached and penetrated yesterday as mentioned on the 13th “Our proprietary reversal pattern points towards a down side target of 2557.50, IF more weakness develops”, with a Smart money down bar on the last swing low and price reversed upwards again. This happened when Volatility ($VIX) was rising. Our Inverse Volatility calculation tool (Inverse calculation tracking the price direction) shows how Volatility increased since 9 November (Decrease in inverse calculation). Since the high of 2594.50 on the 9th we had 5 bursts of Multi Time Frame alignments downwards and no upward signal. It is also interesting to note that Selling pressure was dominant (below the zero line) most of the time since the 9th. At the moment price is relatively strongly moving upwards with Comparative strength developing. We expect the 2576 to 2577.75 to form resistance and if broken with follow through and Buying pressure developing, the near term weakness will probably subside. We had no bar close below 2563.50 and if this happens, the 2542 area will probably be tested. Keep an eye on Volatility behaviour, as it is above a key level ($VIX reading above 12) and should give a clue to price direction. See results of our Strategy on the MTF Tool trading the EURO RISK DISCLOSURE: The information delivered here is for educational purposes only and is not intended to be a recommendation to purchase or sell any of the stocks, futures or other securities referenced. All references are for illustrative purposes only and are not considered endorsed or recommended for purchase or sale by MC Trading. Trading Forex, Stocks and Options, Futures and any Commodity or ETF contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results and no representation is being made that any account will or is likely to achieve profits or losses similar to those shown. MCTrading has taken reasonable measures to ensure the accuracy of the information contained herein and on this website, however MCTrading does not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or from an inability to access such information or any delay in or failure of the transmission or receipt of any instruction or notification in connection therewith. |