Let's focus on the daily chart of the Russell 2000 index futures (RTY) as shown below:
Russell 2000 volume analysis within the apex formation
An apex formation has formed since July 2021 and there is something unusual about this triangle pattern. Normally, while the price is consolidating within the triangle (forming lower high and higher low), we will notice decreasing of the volume together with the contraction of the volatility (e.g. the price spread of the candles are getting smaller from left to right hand side of the triangle).
In this case, despite the volatility is getting lower, the volume is expanding on every down wave, suggesting lots of selling. Yet, what's the results? A higher low throughout from Aug till Nov 2021. This suggests that there wassupply absorption going on while the selling happened.
This is very constructive for a bullish scenario because the"strong hands" step in to support the price on every reactionand to scoop up the bargain.
At the end of Oct 2021, there is an attempt to breakout of both the triangle and the horizontal resistance at 2310 followed by a shallow pullback and reversal, which marks the last point of support (LPS) of the accumulation structure before the sign of strength rally breaks above the structure. Thesupply level is especially low from the previous reaction suggests that the absorption is completedand ready to markup.
Asheavy supply has been absorbed within the triangle pattern, we might not expect a backup action coming back to test the axis line where the resistance-turned-support around 2310–2370, instead the backup action could happen at higher ground.
Thebreakout of the Russell 2000 gives the first confirmation of the scenario of possible rotation from big cap stocks to small cap stocks.
If you want to take it to the next level to beat the ETF, just explore the individual stocks within the those ETFs and pick those that outperform the market, sector and group with accumulation structure and wait for the right trade setup that suits you. For example,$MARA Holdings (MARA.US)$just about to complete the Wyckoff accumulation structure and is a potential candidate to ride on the strong trend of$Grayscale Bitcoin Trust (GBTC.US)$.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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rabitter
:
Complete reversal on the trend. Unbelievable move. Should be great day for Grayscale tomorrow if 65k holds and even better potentially new all time highs for
Machiavellis3rdEye
:
Yeah guys feel free to check out these 6 Highlighted ETF’s… in SPITE of what we KNOW about their use for manipulating individual stocks. Screw ETFS, Screw shorting and option, and screw the corrupted and dishonest and non-transparent DTCC for deserving both death and castration for their CRIMES AGAINST HUMANITY! Where the fuck are the corruption Police at?
rabitter : Complete reversal on the trend. Unbelievable move. Should be great day for Grayscale tomorrow if 65k holds and even better potentially new all time highs for
WYCKOFFPRO OP rabitter : let's monitor $Grayscale Bitcoin Trust (GBTC.US)$ and the related stocks $Silvergate Capital (SI.US)$
Machiavellis3rdEye : Yeah guys feel free to check out these 6 Highlighted ETF’s… in SPITE of what we KNOW about their use for manipulating individual stocks. Screw ETFS, Screw shorting and option, and screw the corrupted and dishonest and non-transparent DTCC for deserving both death and castration for their CRIMES AGAINST HUMANITY! Where the fuck are the corruption Police at?
ann oh : well
Yim singapore : Great
SG6096 : ok
71747049 : Could but so far more bears are lined up
WYCKOFFPRO OP 71747049 : the trend has changed since end of Nov 2021. Bullish view has been violated.