Two juicy look and fails today! Smash's context is so good! My initial short to 4356 was cut and my look above 4419 short was shook out during the attempt of hold above Y's RTH High. I'll execute better next time.
One pattern I have observed over the years is that when we look above a level everyone is watching, like 4418s today, and then immediately sell back down, it's almost always good for a BUY, especially when it consolidates shortly after. Chart watchers see a "pin" or "star" or "rejection" candle and get very excited to sell it, and the market almost always tries to use their buy stops as fuel for further upside exploration (today it was only good for a small peek above up to 23s). The other takeaway is that if it's truly a juicy short after such a rally, there's almost always a good opportunity to get in, in today's case, the retest on the pop back up to 4416 after the initial breakdown. As Smashelito said, tricky for sure, but something you might look for in the future and see if it can be useful in your toolbox!
On micro timeframe after that 4423 high was made there was a trend change. I had that breakout from 4419 potential in my mind so I was kind in a dilemma.
Oct 18, 2023·edited Oct 18, 2023Liked by Smashelito
Thank you josh! I was in that long till 23 hoping for more. After that pullback from 23 I consider a potential fail breakup but for brief moment ES tried to hold yesterdays high and pushed up to 4416 thus I consider it another attempt to attack for new high so I jumped my gun to exit the early short. In hindsight my read is still immature and execution is not good.
So this 4410 passive seller appeared after a failed breakout not before. This is useful positioning information.
Two juicy look and fails today! Smash's context is so good! My initial short to 4356 was cut and my look above 4419 short was shook out during the attempt of hold above Y's RTH High. I'll execute better next time.
Tricky conditions at the moment!
One pattern I have observed over the years is that when we look above a level everyone is watching, like 4418s today, and then immediately sell back down, it's almost always good for a BUY, especially when it consolidates shortly after. Chart watchers see a "pin" or "star" or "rejection" candle and get very excited to sell it, and the market almost always tries to use their buy stops as fuel for further upside exploration (today it was only good for a small peek above up to 23s). The other takeaway is that if it's truly a juicy short after such a rally, there's almost always a good opportunity to get in, in today's case, the retest on the pop back up to 4416 after the initial breakdown. As Smashelito said, tricky for sure, but something you might look for in the future and see if it can be useful in your toolbox!
On micro timeframe after that 4423 high was made there was a trend change. I had that breakout from 4419 potential in my mind so I was kind in a dilemma.
Thank you josh! I was in that long till 23 hoping for more. After that pullback from 23 I consider a potential fail breakup but for brief moment ES tried to hold yesterdays high and pushed up to 4416 thus I consider it another attempt to attack for new high so I jumped my gun to exit the early short. In hindsight my read is still immature and execution is not good.
Thank you, buddy! yesterdays level was spot on x 4367 - took long all the way and scaled out.
Thanks Smash
I have a quick question Smash, why does the characteristics of shallow pullbacks in the 55 handle rally diminish its potential?
Hi Smash... Thank You! What you do has been so helpful to me in understanding the workings of the auction. Amazing as always!!
Had a question..
Why do you get those random red and blue coloured bars on your renko chart usually at highs/lows and also what is that big red bubble at the end?