Welcome to the video update for Wednesday’s trading. The focus is on the emini (ES) and Trader Rick begins with the daily chart where a 3 candlestick pattern completed at the close on Monday. What will happen next? Keep an eye on the slingshot pattern too.
Next chart is the 60 min day session ES chart and after trading outside the keltner channel on Monday price moved in to the buy zone on Tuesday. Trader Rick then reviews a 1-2-3 pattern on the 14400 volume chart that took place shortly after the open on Tuesday. Combine this pattern with a setup using the globex fib extensions gave reason to take a short position that resulted in price moving down to the opposite 1.27 fib at 1054.00. These are high probability setups when you get a confluence of a setup taking place at a target. Price eventually moved 11 points to the downside. The lower globex 1.27 fib extension yielded a potential of 8 points to the upside. It is important to be selective in your trade setups. Wait for the high probability opportunities and have confidence to pull the trigger.
Good trading!