This commentary will focus on the first 60-90 minutes after the Opening Bell. However, our strategies can and will provide setups the entire trading day.

Overnight price action showed early signs of weakness by consolidating inside the prior day’s range (i.e, and prior 2 day’s range) while being in the lower 1/3rd of the intraday area.

From a birds-eye view, price action was forming higher highs and higher lows of multiple days. However, the last two days of price action has had significant retracements off the highs of the day and showing signs of a market cycle phase 3 with 2X tops.

Expecting pre-market Economic news and reports to have minor impact since there are just a few reports to be released today, so we will be cautious.

Pre-market price action on the 5-minute charts also showing to be in the lower 1/3rd of Friday’s range as momentum is forming lower highs and lower lows heading into the opening bell.

So we watched our ES 5 Minute Complete rules and Market Cycle Analysis conditions for more evidence of setups from Candlestick analysis, chart formations and patterns and price action.

Explanation:

With price action consolidating around the opening bell, waited for confirmation on the 1-minute chart and 5-minute to close below the opening bell. Took trade SHORT and watched as price action moved immediately in our favor and took 4+ points profit. 

Review all of our trades in the Quick Hits For Fast Profits Summary table…

Extra Trades: 

With all the weight-of-evidence pointing towards price action continuing to move lower, we took the flag pattern and lower high setup on the 5-minute chart for another SHORT. We drop down to the 1-minute chart to micro-manage the trade with tight stops. Price action immediately went in our favor and we took 2+ points profit.

Note: You will have access to the commentary details if you register for our 2017 Scalp Trading MasterClass training program, or our ES LIVE Trading room. or Quick Hits For Fast Profits program.5-Next