🔴 LIVE Trading Room Breakdown – NQ/ES Price Action Analysis

This is the NQ weekly chart, and if you look at it, there is this big order block—that’s a resting bullish order block. What did the price do last week? It traded into this order block and then finally closed above it. Right? Just looking at this chart, this price action looks bullish. Right now, let’s just get back to the daily chart. So if you look at the daily, here is the low and the high—the dealing range on the daily. What the price did after the selloff we saw last week was come down to the discount, run this low, and then from there start to move higher. Now this particular area is a fair value gap on the daily, and this is yesterday’s candle. The price traded back to this, and now it’s starting to expand. All right.

So again, when I’m looking at it, I’m also looking at this order block. Since this has already traded above it and the order block has been respected—even with this—if you just look at the bodies, the bodies are right at 50%. All of that to me looks like bullish price action, and this was just a retracement. Now, coming to the 4-hour chart, here’s what’s really important. The fair value gap that we see here is from this particular candle—this big green candle generated after the FOMC last week. For the bullish thesis to stay intact, it’s extremely important that the price continues to move higher, something like this. What we don’t want to see is price closing below this on the 4-hour chart. That would be bearish to me. But until that happens, based on everything we have, this looks bullish.

Once it closes above this as an inversion—right now it’s a bearish fair value gap, but once it closes above, it becomes a bullish inversion—you’ll see this turn into a low-resistance liquidity run because there’s a lot of liquidity resting here. And anyway, this is the all-time high. So after that, the chances of making a new all-time high increase tremendously. All right, so this is a very quick overview of what we can expect going forward and what the critical areas for us to watch are.

Similarly, if I go and look at the ES, this is the ES weekly chart. ES is relatively easier and stronger than NQ. Again, very similar: this is the bullish order block. It traded into it and then expanded again. Here’s the daily. If I just draw a dealing range from this low to this high, it actually got maybe a tickle to equilibrium. But again, if I look at the bigger dealing range from here to here, you see how the price traded back to the discount, barely crossed equilibrium, and then expanded again, creating a fair value gap. Here we are with tons of liquidity resting here.

If I look at the 4-hour chart, again it’s similar—the Powell press conference is nothing but that for ES. Once it closes above, there are two daily highs here, and then you know the all-time high is here, so all that would be inside. All right. So this is again a very quick rundown looking at these higher-time charts to identify the critical areas and liquidity levels, and then we can plan a move based on price.

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