Today I will share with you another chart, a chart which like the profile charts takes away noise and lets you in on the bigger picture.
This is a point n figure chart also called PnF .
It’s a 5 point 3 box reversal chart and I use it often to find initiative n responsive behavior on charts.
The chart of the future trading for the past one week shows initiative selling at the end of last week ( bigger red boxes) and a change of dynamics from the close of friday ( bigger green boxes)
What should also catch you attention is the smaller boxes forming from yesterday noon.
This market is in the process of moving to the upperside of the bracket we have observed between 6000-6300.
We have auctioned over the past week in the lower half between 6000-6150 and we should make a move to the upper half now.
Why do I say that ?
Years of watching the market have taught me that it is never quite near the tops.Volatility occurs at tops n bottoms like the kind we saw at 5966.
So we should have a break-out !