Last week, ES' yielded the following results
- Scenario1 short on rejection 3717 level yielded 90pts
- Scenario2 long on dotted trend line + 3600 support yielded 50pts
Observation:
- Converging trend line - prefer to wait as range narrows
Possible Scenarios are considered:
1) Wait till price shows definite direction by exit of converging trend line
as price converge, meaning narrowing range.
2) Short on retracement after breakdown of support or converging trend channel
3) Long retracement if price breakout of converging trend channel and
finds support
Weekly: Higher vol narrow spread down bar close at low = demand coming in
Daily: Ave vol down bar close at low = minor supply
H4: UHV down bar close at low = demand coming in
Price reaction levels:
Short = Test and Reject | Long = Test and Accept
3903 3792 3717
3642 3540-3600
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Have a profitable trading week.
