ES dropped today as I anticipated:
Now a low low has formed and I am looking to take shorts on the bear channel that has formed with trendline break as confirmation. Buyside liquidity is the target.
Now a low low has formed and I am looking to take shorts on the bear channel that has formed with trendline break as confirmation. Buyside liquidity is the target.
Comment:
Some other things to note: There was a small lower high that formed that some may use as MSS, however I don't think it is significant enough because of the displacement of the previous move. A small FVG formed in the 15 minute - low chance of reversal again due to displacement, therefore I will hold this trade until PT and may add some positions at market open. Position will be closed at SL.
Trade active:
Closed out my position with a slight profit- I saw asian buyside got taken out and I can see it going to buy side liquidity at NY open - so I will wait for that for a stronger trade. No need to force a trade.
Comment:
My second comment actually came true, and this is because I ignored weekly and daily displacement towards the upside- Expecially in times like this a short squeeze is very possible and likely. I am glad I closed out my trade in the given time frame. There were a lot of bullish confirmations that I missed due to focusing on the lower time frame.
Comment:
This looks like a fake out - I can now look for shorts next week. Excited to see where this goes.