U is back in the horizontal trading channel again.
There is also a Bearish Crab inside that Rectangle which managed to break through the resistance line of the Rectangle.
The Crab ends at the 1.618 or close. It is a reversal pattern as well as an extension pattern as the end of this pattern is above X (bearish) or below X (bullish).
The bullish version looks like a crooked M and the bearish version looks like a crooked W.
Valley 2 is higher than valley 1.
Price has reached T1 of the Bearish Crab pattern which is the hump in the crooked W for this particular crab. This is support until broken. It will be resistance when price falls under it.
A Rectangle is a neutral pattern until the support line is broken.
If it is, then watch out below as there is no support below 29.09.
Some would wait for the lower level (29.09) for ES (entry short).
We are all different and some are more cautious than others.
Also, some folks may want to swing trade inside the Rectangle.
No recommendation.
Possible "short" to lower trendline of Rectangle and I plan re-evaluate when price approaches this level as I am short.
My alert is set.
There is also a Bearish Crab inside that Rectangle which managed to break through the resistance line of the Rectangle.
The Crab ends at the 1.618 or close. It is a reversal pattern as well as an extension pattern as the end of this pattern is above X (bearish) or below X (bullish).
The bullish version looks like a crooked M and the bearish version looks like a crooked W.
Valley 2 is higher than valley 1.
Price has reached T1 of the Bearish Crab pattern which is the hump in the crooked W for this particular crab. This is support until broken. It will be resistance when price falls under it.
A Rectangle is a neutral pattern until the support line is broken.
If it is, then watch out below as there is no support below 29.09.
Some would wait for the lower level (29.09) for ES (entry short).
We are all different and some are more cautious than others.
Also, some folks may want to swing trade inside the Rectangle.
No recommendation.
Possible "short" to lower trendline of Rectangle and I plan re-evaluate when price approaches this level as I am short.
My alert is set.
I have only been in overall bull markets since I started trading, so a bear market is relatively a new concept for me. Yes, the bull market had some bearish periods but the overall trend was Bullish for a long time. Then it changed and bad economic news could lurking around any corner, waiting to pounce on my longs. I felt I had to adjust and I like trading too much to just sit on the sidelines until we reach a bottom.
I studied how to go short but I am still learning something new every day. DO YOUR OWN RESEARCH.
If I do not recognize what I am looking at, I do not trade it.
There is always another trade coming a long that I do recognize.
The trend is my friend until it ends, so I go with the flow these days.
I try not to fight the trend or the Fed (o: