The March contract will lose its liquidity by the end of the week and become history.
In fact, it is possible to summarise the results, plus it is doubly enjoyable to do so for the March contract. Why? The end of this contract means that spring is just outside the window.
Slide#1 – indicators, bar charts and data types are marked on it as well as the volume core of the contract and the second most important range. Also take note of the VWAP price and that the current contract remains within the 2 deviation.
Open interest is already signalling that participants are dumping their positions and have started to open them on the June contract, so take note.
I have highlighted as much useful information for you as possible, which may come in handy at the start of next week’s new contract.
Slide#2 – on this slide I have marked for you the main volume arrays as translucent rectangles.
The type of contract is mostly neutral. I will explain why.
Compare how long the market has been in a sideways trend and how long the unidirectional trend has been holding.
I have highlighted these two areas with a green line and a red line, which corresponds to the prevailing trend.
The best part!!!
The rise and fall continued for 4 days.
If you measure how many ticks in 4 days of rise and 4 days of fall the price has shifted – they are +\- 730 ticks.
The movement from point 1, as well as from point 2 – starts as a result of a sharp reversal shock day.
Obviously, this cannot be a coincidence.
By how much the price was pushed into buying, by how much it was pushed back, which is what we see from the outcome of the core formation range, the vwap price and the current price.
The priority range is 1.0650 to 1.075. Open sell positions have gained more. In case the buyers fail to push above the core at the beginning of the June contract, an attempt to extend the price beyond 1.05 is quite valid.
VolFix Company / author & trader: Mikhail Lemah