Backdrop
Market was slightly positive. Bad inflation reading sent stocks down early. Bitcoin ETFs are born.
Daily Chart
Red candle breaking prior lows, touching lower range of prices from October. Now below the 200 SMA. Day range was modest at 73% ATR. Notable drop in ATR from the 10’s for many months to now below 8.
3-Minute Chart
With the bad CPI number and price dropping before open below prior day level, and being so close to the bottom of the range, a down continuation was very likely. Price started going down below all the levels. Below night, previous day, and 200 SMA. 3 rough pushes down. Hit a measured move level from the overnight drop. Price bounced in the 4th hour, and soon broke VWAP. Ranged after VWAP, ending at the 200 SMA.
Strategy
Short all day, below all levels, after overnight CPI drop.
Happy trading.
(This post is for entertainment purposes and is not investment advice. You can lose money in the stock market.)