TODAY: ES AND TF
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In the pre open we see a bearish channel, and the trade focus was upon a BO target of 26.25. Reasons given included staying out of the tight range within the channel (difficult at times to trade) and we wanted price to have a chance to move away from the channel, taking us in the BO push. Both the entry and the SB broke in our favor.
B2 (and to a lesser extent B3) failed to reach the 50CB level, a bearish continuation signal. That same level was important later in the PM. Key points stay important during the trading day.
Support was reached at 1320.5, and we have some long playable PB's to the EMA, along with some 50CB setups. The 50CB will serve two purposes: one is a trend 50CB like the BO bar we shorted. The other way to use the 50CB ins in a tight range as a tool for scalp entries.
After the BO, TL's are another tool for searching out trade entries. Failure of the SB to reverse added reliability and confidence to the TL short back to the support area.
When PA begins to consolidate, look for the entrance move. The general rule or expectation is for price to BO of the consolidation in the same direction as the entrance. An opposite BO is considered a strong entry.
The failure at the original 50CB area was again a bearish signal, and was followed by a MAXT and FBO, both offered secondary entries for the short.
The TF was played in a similar manner today, in fact, played more than the ES.
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