NASDAQ 100 Futures for the week 12/27 to 12/30
If the price breaks the uptrend channel, the price action will generally follow the downtrend and keep going down.
And let’s use the 1:1 ratio strategy to find more details.
1. The price dropped from 0 to 1 and 2 in a perfect 1:1 ratio.
2. Level 2 could not stop the bears, and the price keeps dropping.
By the strategy's rules, if level 2 cannot hold, the price will be down another 100%, which is from 0 and 2 to 2 and 4.
Since the price never crosses above level 2, the market is still considered weak.
Therefore,
If the price is moving within level 2 and 3 and never breaks the uptrend channel, the market is more likely to do triangle ranging.
If the price drops below level 3, where the price will be below the uptrend channel, it may drop further to level 4 to fulfill a completed 1:1 move.
**Not Financial Advice**
The information contained in this article is not intended as, and should not be understood as financial advice. You should take independent financial advice from a professional who is aware of the facts and circumstances of your individual situation.
And let’s use the 1:1 ratio strategy to find more details.
1. The price dropped from 0 to 1 and 2 in a perfect 1:1 ratio.
2. Level 2 could not stop the bears, and the price keeps dropping.
By the strategy's rules, if level 2 cannot hold, the price will be down another 100%, which is from 0 and 2 to 2 and 4.
Since the price never crosses above level 2, the market is still considered weak.
Therefore,
If the price is moving within level 2 and 3 and never breaks the uptrend channel, the market is more likely to do triangle ranging.
If the price drops below level 3, where the price will be below the uptrend channel, it may drop further to level 4 to fulfill a completed 1:1 move.
**Not Financial Advice**
The information contained in this article is not intended as, and should not be understood as financial advice. You should take independent financial advice from a professional who is aware of the facts and circumstances of your individual situation.