Dynamic trend: Up
Background: W1 – weak; D1 – weak
Market Phase: Mark down
Point 1. Two wide spread down-bars on high volume resulting in a breakout and a down move. VSA shows Major Supply signal.
Point 2. Up‐thrust confirming weakness in point 1. VSA shows Supply signal.
Point 3. Narrow spread No Demand bars on very low volume as another confirmation of weakness.
Point 4. High volatility and high volume breakout of support at 105.00. The next bar confirmed the weakness.
Suggested Strategies
Consider going short below 105.00.
Another way to go short is when the price gets back to 105 area, and VSA produces No Demand signal (those would be low volume up bars). This is also the area of previous weakness.
In case the background remains weak and the price rises up to 106.50, consider taking a short on No Demand signal as well.