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.
The Easiest Way To prepare for Scalp Trading the ES E-Mini Futures.
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Pre-market Economic news and reports…
Overnight price action consolidated and form an M-pattern while continuing to remain inside the 3-day extended consolidation range with an upper and lower boundary of resistance and support. Price action starting to build some momentum heading into the pre-market and opening bell. Initially, after the opening bell, the markets were very choppy and showing very little momentum with a tight range. Then price action picked up on the 1-minute charts and start showing evidence of lower highs and lower lows. We decided to sit on hands and wait for more favorable market conditions.
For ultra-aggressive traders, there was probably three (3) scalp trading opportunities for quick profits.
For traders focused on higher quality trading, with the 3+ daily consolidation, we continue to see very few or no quality setups so should have been patient and sit on hands.
Using 5-minute charts, we took a SHORT based on a flag pattern and 2-bar reversal pattern. Price action slowly went in our favor, we moved the stop to break even, and using a trailing stop, took 1.0+ points profit.
Price action continued to show evidence of mini market cycle phase 4 with lower highs and lower lows. Took flag pattern retest & break down SHORT setup. Price action went in our favor and we moved our stop to break even, then using a trailing stop, we took 2.0+ points profit.
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