norok

Double Top Morning "Counteryeet" (Day Trading/Higher Timeframe)

Short
CME_MINI:ES1!   S&P 500 E-mini Futures
This details my newly coined setup The Counteryeet :D

This morning my community and I were trading CME_MINI:ES1! futures on the 1 minute timeframe in line with the context of the broader higher timeframe price action.

For context, right now on the Daily the stock market is in a bearish trend . Price pulled back to an Ichimoku Kijun Sen which represents the 50% Retracement from the June downward move. The failure to close above this key Resistance suggests in itself that the bear trend is not yet broken:

The opening price action within the first 30 minutes gave us a "Yeet" up to the overnight 4:00am high on the 30 minute timeframe which sets up the potential double top:

The 1 minute timeframe Yeet stalled out and could not confirm a second bar closing above the key 30 minute level. This was the first bearish sign.

Confirmation that the major high is holding comes with the 9:41 bar closing below the Tenkan Sen ( TS /Red Line/Trigger line) showing signs of a failed breakout:

One could have played the initial pullback to the Trigger Line for entry but I waited for one more sign of confirmation in the form of a closing bar below the Reaction Low:

The entry is then made on the pullback to the Trigger Line. A stop should comfortable clear the Major High and the target for a proper 3 to 1 Reward/Risk Ratio takes price down to where the morning began:

With patience the Major High was never breached and price reached the initial trade target:

The beauty of this trade is that it sets up a very LOW RISK entry to play the Higher Timeframe 30 minute Double Top as well as the Daily Trend Pullback. Keeping the initial stop and allowing the winner to run could yield a 15 to 1 ratio down to the 50% Retracement of the 30 minute bullish trend:

This could even go further to retest the low on the Daily:

Join me on links below to hang out as we do these live!

"Be to others the person you needed to meet 10 years ago"

Discord Trading Community: https://discord.gg/eDfhKvS5AC
Youtube: https://www.youtube.com/c/NoroksNotepad
Twitter: @noroktrade
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