$ES: Contraction in Volatility Should be Followed by Expansion in Volatility

  • CastAwayTrader
  • May 8, 2023
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$ES #ES-mini #trading-setup

On Monday we got the narrowest trading range for seven trading days. The rule of thumb is contraction in volatility is followed by expansion in volatility.

The ideal scenario to trade would be to get a failed breakout setup: a push over 4,167 followed by a quick bearish reversal and drop under that level:

ES-mini 10 min chart, the primary “Least Bullish” scenario

This is how that primary scenario looks on a 240 min chart:

ES-mini 240 min chart

This is how the Monthly Opening Range looks for May:

To start a trending move either bears have to break the green monthly support or bulls should break the red monthly resistance.

To identify Month Opening Range by yourself use my free indicator for TradingView.

Read my blog to learn how to use that strategy.

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