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ES: Trend Continuation

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Hello everyone, I'd like to share with you todays ES trading levels.

As drawn in the chart we can see, that the price broke the structure of an uptrend and set new LL and LH yesterday.

We want go with the flow and are looking for a trend continuation and some cheaper prices.

Please let me know your thoughs and if you like the idea.

交易开始

Our sell limit order got filled at 4321.25.

We saw a nice drop afterwards and price is now pulling back and retesting the resistance area.

The SL was trailed into profit and we just let it run now. TP would be around 4258.50.

There isn't a major news event today which could affect our trade.

注释

Unfortunately our trade got stopped out in profit for 7 points as the price came back. Even though the setup is still VALID. Let me tell you why:

Structure:
In the ydays trading range we made a new LL which is telling us that the market is bearish. After the price broke our red resistance level today, it didn’t had enough momentum to push the price up to ydays LH and above the VAH. The strength of the buyers can be judget by its momentum and the height of the price drive to new highs above the resistance. Instead we tested the red zone several times with low buy volume. Most of the time when this happens, it’s a bull trap. So I defined this movement as an UT which gave me the first confirmation for another possible sell entry.

Market Profile:
The market usually wants the price to be in value areas. Ydays VAH and VAL levels are 4345 and 4281.50. As the market sentiment is bearish we can consider all prices above ydays VAH as “not accepted” by the market. That means we didn’t had enough buyers in the past to keep the price above that level.

Conclusion:
Giving us all these information we can now estimate a better price movement and use that edge for another sell entry, what I did with an even better entry price as before.

All we can do now is sit back and watch what the market is telling us.

交易手动结束

Closed the trade at entry. You can't be right every time. But with a proper risk management we could make 7 points today. So it's all good. There are very day many opportunities.