Collection Of Intraday Patterns For The ES Market

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It`s a classic candlestick reversal pattern.

The market first gaps up, then gaps down, leaving an "island" above.

I would never enter a on trade on this pattern alone, but it`s something to be aware of and can add confluence to other price action observations.

Merely an observation on my part.

 

thanks ! never noticed this before.

 

7/08/11 in ES journal for those who say TA is BS

http://quotes.ino.com/chart/index.html?s=CME_ES.U11.E&t=&a=&w=&v=w

 

Here`s a wedge and double top that I called and traded in the ES journal this very Friday.

The rising wedge is called a bearish formation in TA literature, but instead of anticipating a break, I entered after the wedge broke. Since the wedge is bearish by definition, one could also enter early in anticipation of a break and have a buy stop and reverse above, in case it breaks out to the upside.

One thing that the critics of TA seem to forget, is that failed patterns often produce trade opportunities in the other direction as well More on that later.

 

It's very tiresome to have to click on each link to open the image. Don't you know how to use the forum codes?

 

Al Brooks teaches a setup he calls the twin reversal and it is one of those observations about price action that makes a lot of sense to me. I observed a lot of them on today`s 5-minute chart.

The basic idea is that price prints a large bear bar in a down move, but on the next bar, the bulls aggressively step up and creates a bull trend bar, ideally creating a double bottom to the tick.

I guess one of the reasons that this setup works so well is that a lot of shorts get trapped on the bear bar and will then have to chase the market higher as they cover their losses.

As always, context is important. For this setup to be considered, you need to have a move to reverse in the first place.
Secondarily, some added confirmation in terms of levels also increases the confidence in a successful trade. The bottom today was the S1 and AH low zone, so it was a logical place for price to find support. Combined with the picture perfect twin reversal, it was a great long.

What do you guys think?

 

sure as long as it doesn't turn into this

 

Nothing works all the time and as I said, context is important. Besides, the green reversal bar should ideally be as big as the prior bar, so the setup you posted did not qualify.