Analysis: Since making our major pullback, during the second month of the year, price has traded mainly sideways. During the creation of this sideways struggle price managed to form a solid low around 2530. Above we see key resistance at 2800.
Fib retracement confluence sketches a solid area of around 2708. This 50% level should act as the mean through the duration of this pullback. Above this level and we should be considering long scalp trades. Below this level and short scalp trades only.
The end of last week certainly pushed below the 2708 level when news of the Chinese tariffs broke headlines. Next week I would be very careful opening long side positional trades below the pivotal 2708 level. One of my rules is to NEVER hold trades that are short the S&P . You would be better off getting a payday loan for addictive drugs.
Monday should tell if ES is ready to accept higher prices or if we are due to test the lows. The market will tell us and I shall not force my opinion on it. This strategy is all about trading what I see and NOT what I think.
Strategy details: Daily or 4 hour chart: watch for cross of 11 (red) and 9 (Orange)
needs to confirm direction. above/below 50.
Patiently enter near the and trail 7 pips behind the orange line.
>4 hour > hourly. No trading below the hourly chart. Don't even look.
Check out the monthly chart in the comments.
Good luck everyone! Hope this series will be useful to others because it certainly will be for me. I do not do this for attention/rep/profits. I do this because I love it!
If you found this analysis useful or thoughtful Likes/Comments/Follows are much appreciated!
Disclaimer: Your data may be different. Material is educational only. Trade at your own risk!
Symbol | Weekly Directional Bias | Correct : Incorrect counter(weekly)| Win/Loss counter (all trades)
ESM18| LONG | 0:0 | T 0:0
This market has every intention of going lower. I do believe those lows should be tested.