ES didn't get too far away. Everyone was looking for a resistance on the ES. I wish them luck on that.
If you want to find the resistance for ES, you can find it in the VIX. The supports at the VIX can act as a guideline of where resistance would be on the ES.
Now, VIX is not a purely inverse index. VIX goes in 2 stages. 1) VIX rises due to retail traders buying calls/longs at a lightning rate. 2) VIX rises when the current trend is disrupted (pullbacks).
If you know when the VIX would bounce, then you know when to exit your longs. That's the easy way to use VIX.
Most new traders try to treat the VIX like a normal index. How successful is that? There is a reason why you don't see many volatility traders. Do not trade UVXY/SVXY unless you have a thorough understanding of how the VIX works. The VIX is not a normal index.
If you don't understand the VIX, then use it as an indicator of when to exit longs. That's the more profitable approach.
If you want to find the resistance for ES, you can find it in the VIX. The supports at the VIX can act as a guideline of where resistance would be on the ES.
Now, VIX is not a purely inverse index. VIX goes in 2 stages. 1) VIX rises due to retail traders buying calls/longs at a lightning rate. 2) VIX rises when the current trend is disrupted (pullbacks).
If you know when the VIX would bounce, then you know when to exit your longs. That's the easy way to use VIX.
Most new traders try to treat the VIX like a normal index. How successful is that? There is a reason why you don't see many volatility traders. Do not trade UVXY/SVXY unless you have a thorough understanding of how the VIX works. The VIX is not a normal index.
If you don't understand the VIX, then use it as an indicator of when to exit longs. That's the more profitable approach.