ES Journal Archive (2006 - 2008)
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Most of the market internals are positive, not sure why you would get short here on a trending system. I would classify this trade as more of a counter trend / reversal.
Although shorting at 1481 at that time frame was a good r/r play (I didn't take it but I was also not in front of the computer)
if you mean the price action to the extreme right....it`s not really a textbook setup as the neckline has a series of higher hi but certainly viable....especially with price action forming that bullish base.....nice observation.
expecting a move to 90 eventually but i`m not crazy about us taking out that active lo at 78.25....bit of a 3 min diamond formation.
Gary Smith points out in his books on daytrading S&P futures how these mid-day swoons can be scary but are generally bullish for the afternoon. Note how the price snapped back after taking out the so-called "breakeven" stops all the way down to 78.25. Swoon drives out weak longs, who sell their contracts to those who will then resell them higher during the afternoon rally. Indeed, this is going on right now. For how long, who knows?
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