$ES #ES-mini #trading setup #Elliott Wave #trading strategy
Today ES-mini futures completed the bearish Head and Shoulders reversal pattern:
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):
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.