This morning we discussed Tuesday’s failed auction, which is just a name given to an event that sometimes occurs when a market trades.
When one of this chart pattern shows up, I make a big deal about it because on October 2nd, 2014 I made an oath to the good readers of iBankCoin.
And for damn good reason–these failed auctions have been a popular feature at many an inflection point during my young career as a trader.
The last time we had a significant failed auction was back in December of 2015. We discussed it ad nauseam:
December 2nd, 2015 – Failed Auction May Signal Trouble Ahead
December 3rd – Failed Auction Validated: Hide Your Wives, Kids
December 11th – It All Started With A Failed Auction
Perhaps your short-term memory does not recall what happened later that month and into January…
With regards to our current failed auction, it validated this afternoon. Consider my bias short as long as price stays below /NQ_F 4816.
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Did this same sequence happen 8/1?
Sort of, vs last December’s high. The difference with the current failed auc is we barely took out the prior high, just a few ticks, then failed as opposed to the 08/01 instance where we pushed nearly 10 points above the prior swing.
But wasn’t technically a “failed auction?” It’s a smaller move above the high, and has to be early in the session?
Yes, you could consider what happened on 8/1 a failed auction. There were some nuances to the one above which in my perception give it more validity.
By my understanding they can happen any time during the session.
*tips hat* Epic coverage sir