Originally posted by Seanote
Exactly. Draw trend lines at support and resistance for the last 90 days. MO is at or near resistance so I went short with a target of roughly 55.00 but I don't always hold to my targets due to other opportunites or the market in general. There are also a few candlestick formations that have formed leading up to this week that signal a selloff coming up. IMO.
Also, look at the ES futures on a 30 minute 3 day (back to Friday) and a 13 minute 2 day (back to Mon) and look at the fourth candlestick on the 30 min. and the candlestick at 13:30 on the 13 minute. These are major signals that predicted the that the /ESMG2 would drop big (about 40 points). These chart formations are more true with futures then stock. I started trading futures 3 weeks ago and have done very well. I started with 10 contracts and now I'm up to 40. I shorted the ES's at 1069.50, 40 contracts and I'm still short on 30. Studying those 2 charts and the formations that began leading up to those to pivotal candlesticks will hopfully give you some more insight.