Apr 132012
Today’s example trade is a little different. There were reasons to enter long at or near the S2 pivot at the bottom of the 70.25 level, but none of the down pushes ever saw good buying confirmation. Price ended up consolidating around the level bottom; creatine a flag pattern of lower highs and higher lows. Most times that consolidation pattern will resolve itself in the direction of the flag pole (i.e. in this case the down move from 75 to 70). However today the order flow was giving subtle hints that price could break up out of the consolidation. Today’s annotated chart walks through reading the order flow as the consolidation area builds.
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