CRV: Answered Question Regarding Current Price Action
Hi Everyone! A follower asked a question, "Hi David, are wwe in danger to see a third leg down here?" Their question was regarding CRV 6-hour time frame. They showed a descending channel in a 6h chart that looked something like the chart I'm showing below.
I went on to explain my reasoning behind this current move down being used by the Composite Groups for several purposes.
1 - Taking profit on longs opened between $0.40 cents and $0.50 cents. When taking profits on those longs, they also opened shorts because they knew they were going to sell quite a bit of their longs; causing the market to fall; hence the reason for opening a short.
2 - They also have "new" long position limit orders at a price range lower in which they will have completed taking profits on their $0.40 cent to $0.50 cent long orders and begin closing their shorts to take profits on those shorts within the range their new long position limit orders are in place. This could actually be seen as "wash trading." But I digress.
Anyway, I hope this video publication was helpful.
Happy Trading and Stay Awesome!
David
I went on to explain my reasoning behind this current move down being used by the Composite Groups for several purposes.
1 - Taking profit on longs opened between $0.40 cents and $0.50 cents. When taking profits on those longs, they also opened shorts because they knew they were going to sell quite a bit of their longs; causing the market to fall; hence the reason for opening a short.
2 - They also have "new" long position limit orders at a price range lower in which they will have completed taking profits on their $0.40 cent to $0.50 cent long orders and begin closing their shorts to take profits on those shorts within the range their new long position limit orders are in place. This could actually be seen as "wash trading." But I digress.
Anyway, I hope this video publication was helpful.
Happy Trading and Stay Awesome!
David
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