Thursday, February 7, 2013

Study: 200 tick move in /6e - and Failure /es

This morning /6e dropped nearly 200 ticks.

The pattern that formed before the move was pretty standard.  No surprises.

The pattern was about 4 hours long.

The resistance line was tapped 4 times -- 3 is typical -- two taps were very close in time.

The support line was tapped 3 times before it broke.

The move started on the second break - there was kind of a hinge but a 10tick stop would have been fine on the first move.

Study this set up.  It's not uncommon.

/6e topping pattern before the move

Add ON

Here's /es chart.  A failure looks the same -- you never know, so you use a tight stop and lose small win big.  Here's /ES the next morning.   It dropped a point then reversed to the upside.

/es Similar pattern - no need to lose more than 1.5 though

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