60-minute ES is potentially forming a double top with dying momentum. Likely we might see a 10 to 20 points of minor correction from here (ES is 2890.00 atm). I tried to upload a screenshot which I couldn't. I will post texts instead.
Humbletrader I disagree. This is a SPB bull trend which is one of the strongest type trends there are even though momentum waxes and wanes and usually in not real big amounts. SPB = small pullback trend These type of trends can be relentless for hours. Sometimes the whole session. Often there is a reversal attempt within the hours of 12:30 to 2:00 central time then the trend resumes to the close. The tactic is buy the pb’s or add to a position on pb’s. Often a trader will find as the tight channel continues bullish the pb’s end in the middle third or bottom third of the tight channel. As long as price stays above swing lows i like to add but I also watch the EMA (20). If price on a pb breaks a little below it I am ok with that as odds favor it will quickly within a few bars go back above the ema. But if price breakshard below the ema and out of the bottom of the tight channel then that is an alert of a pending reversal. The hallmarks of a SPB bull trend is it relentlessly goes up even though slowly, and stays much of the time above the EMA. Just continues grinding up. Bullish institutions are buying up every bear attempt to reverse it. They are stronger. Traders often think it has to be at a top because the channel is usually not a steep channel. So they are continually shorting what looks like tops ..even wedge tops...but in a SPB TREND that is not the tactic to employ. In general I am going long in the lower middle or lower third range. If there is a strong BO south out of the range, south of swing lows, south of the the ema AND it has FT then I exit all longs reverse or triple up and go short.
Still waiting for this double top pattern to play out. It'll take time as this is a big pattern. Sitting idle right now & patiently baiting.
Maybe you are right. If such pattern isn't going to play out and there isn't any PB, then I just sit idle. All I lose is those hours sitting and waiting which is fine by me. I can do a lot of stuff in the meantime such as taking my dog outside for a walk and etc...
Volpri, I've seen thousands of time that whenever market going up/down without momentum confirmed, there won't be much further room to go.
Damn, I missed my entrance point while surfing on here. I go in anyway since this is a big one. So far so good...
It broke out of the spb trend south so i exited my averaged in longs went in the other direction (short) and got back the loss and made nearly as much in profit. Then I took another short on weakness and made another two points. This is how I trade these sbp bulltrends. Once they break south of the channel...break a swing low..break the ema then it is time to look at exiting and reverse loading up for a move in the opposite direction. More often the spb bull trend will be relentless all session with a reversal attempt between 12:30 and 2 that fails and trend continues up into the close. I took a snapshot and may find time to give some more comments. You trade what you get. When an u expected or lower odd move comes into play then you have to adapt and go with it. I just too another short looking for a measured move down. Will possibly comment later. There were several ways to measure the measured move but I took the smaller MM and exited with a profit as I am going on the highway in a few minutes to visit Dad and Mom.