$ES: Micro Update: Setting Up for a Drop

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$ES #ES-mini #trading setup #Elliott Wave #trading strategy

Today ES-mini futures completed the bearish Head and Shoulders reversal pattern:

ES-mini, tick bar chart

The neckline 4,514 was violated twice today.

Now look at that a-b-c flat structure in the yellow box.

Remember the rule for up trending market:

“A flat a-b-c shaped pullback / consolidation that finds support at the freshly violated resistance is a continuation pattern. It’s the most reliable long setup.”

Remember the rule for a down trending market:

“A flat a-b-c shaped pullback at or slightly above the freshly violated support is a continuation pattern. It’s the most reliable short setup.”

You probably heard many times how we can set a target based on the bearish Head and Shoulders pattern. We measure the height of that H&S pattern, from the top of its head to its neckline (see the blue box):

ES-mini tick bar chart

hen we project the same distance down from the neckline (see the equal sized red box).

That method gives us a target for a drop at 4,480.

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$ES: Two Path Leading to 6,000

$ES #ES-mini #Elliott Wave I have been tracking two scenarios and both allow bulls to push ES-mini to 6,000. Let’s

CastAwayTrader September 13, 2024

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