Hi Everybody,
When markets make a BIG gap opening, like yesterday, it is always worth viewing this with caution. When this happens, the first think I do is check the “larger degree” DP’s on the 15min Chart. Here the normal “day session” charts did not give any good information, but the 24-hr chart did (please see the posts on the Advanced Blog).
As you will see, the ES not only made a big gap up yesterday, but ran into 15min DP resistance. When this happens then the “most likely” outcome is for the market to fall as the market attempts to “close” the gap. This is why all potential buy setups failed yesterday and the best trades were on the short side.
I know this is the Standard Blog, but I would like you all to see this “Advanced” short on the 3min ES to show what is possible, once you become more experienced. As you can see, mid morning we did have an abc correction, as found by the Elliott Wave module. The only reason this was not a automatic setup was because of the increased initial risk, but as we were anticipating a big decline, this could have been taken.
As you can see, this managed to capture most of the decline yesterday.
Please take a look at the Advanced Blog, to see now only how the “larger degree trend” was down, but also the 2min chart helped “give confidence” in this ABC manual trade.
Thanks, Steve
When markets make a BIG gap opening, like yesterday, it is always worth viewing this with caution. When this happens, the first think I do is check the “larger degree” DP’s on the 15min Chart. Here the normal “day session” charts did not give any good information, but the 24-hr chart did (please see the posts on the Advanced Blog).
As you will see, the ES not only made a big gap up yesterday, but ran into 15min DP resistance. When this happens then the “most likely” outcome is for the market to fall as the market attempts to “close” the gap. This is why all potential buy setups failed yesterday and the best trades were on the short side.
I know this is the Standard Blog, but I would like you all to see this “Advanced” short on the 3min ES to show what is possible, once you become more experienced. As you can see, mid morning we did have an abc correction, as found by the Elliott Wave module. The only reason this was not a automatic setup was because of the increased initial risk, but as we were anticipating a big decline, this could have been taken.
As you can see, this managed to capture most of the decline yesterday.
Please take a look at the Advanced Blog, to see now only how the “larger degree trend” was down, but also the 2min chart helped “give confidence” in this ABC manual trade.
Thanks, Steve
Posts
