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Volatility – Daily Update

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Volatility has recorded several important signals, prompting this daily update. Using a disciplined blend of technical analysis, candlestick evaluation, Elliott Wave methodology, and classical chart patterns, this series focuses on isolating the signals that matter most and anticipating the shifts that shape market direction.

CANDLES

Daily

Volatility instruments recorded a significant bullish failure on the daily frames. They all had an opportunity to confirm a bottom or form bullish continuation candles by closing at the daily highs, but they failed to do so. Bears immediately took control, producing multiple strong bearish candles down to the 4-hour frame, which closed with a powerful Bearish Engulfing.

While there is still a chance for one more uptick, momentum has shifted bearish. Monday’s daily Bearish Engulfing is back in force.