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Assessments / Blog 2017-12-02 ES #F Volatility galore Friday before the regular trading session we warned about the anomaly of increased Volatility on the upswing to a new high. Volatility increased further and we had a flush to the down side with Selling pressure developing reaching a low of 2605.00 in minutes. The sell-off was short lived and price immediately reversed to close at 2642, with Volatility decreasing again. It is difficult to interpret and give an analysis after this kind of price behaviour, but the Smart money down bar on the last down swing looks like a Spring formation, penetrating the previous swing low at 2619.75 then jumped up to close 37-points higher again. The current upswing in progress has drawn very low volume with negative Delta volume so far, giving a mixed signal in contrast to the potential Spring developing. Traders have to be cautious in these circumstances, carefully watching Volatility and Buying/Selling pressure. A bar close above 2650.25 with Buying pressure will probably lead to another new high. Should the upswing end on this low volume and a bar close below 2613.50 with sustained Selling pressure, it will be a serious threat to the near term uptrend. 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. |