Friday action
ok how i saw it:
on the first chart red solid lines are S, green solid lines are L, black thin dotted lines - stop losses, coloured dotted lines - either more risky entries, or covering your position without reversing.
the 2nd chart of 5 min NDX is shown to explain tricky yellow C and pink G lines on ES.
1) from after hours action - Short A. Riskiest trade of the day IMO, as after hours patterns are most vulnerable at the open, on this particular trade it was a whisker away from being stopped.
2) rev to Long B. A riskier entry right after the hammer, or a safer one a tad later on a guaranteed HH.
3) first inverted hammer on ES at 11:10ish. Tempting to close Long. However 2 considerations - firstly we do not get LLs (equal lows at yellow C), secondly, NDX 5 minutes showing clear continuation pattern (see 2nd chart). Things look even better on XBD 5 minutes.
4) second inverted hammer on ES at 11:40ish. Confirmed by a morning star on NDX 5 min. Confirmed by XBD and SOX struggling at Thursday's HOD with ES being miles above - negative divergence across indices at the resistance level. The only psychological motivation to stay Long is the "shine" of 1100 level :cheesy: Not enuff reason to stay long imo. AT LEAST close long.
5) short at E. Again a riskier entry (riskier because despite all said above, there had been no prior LLs only LHs before that) - or a later safer one at 1096.75
6) rev to Long at F. Risky punt for 2 reasons - firstly ES displaying rather continuation pattern (high odds of a bear flag), secondly NDX not exactly recording a HH - well sort of but lacking conviction as it is still below the 14:00 High. The author actually went long at 1093.75, quickly rev back to short at 1092.50, cost me 1.25 pts loss + 1.25 unearned money
7) Long at G - clear dbl bottom on ES, with second bottom higher than the first one on NDX - positive divergence btwn them.
Good w/e to all