Great trading day compared to yesterday...Starting with the bull flag . Not easy to spot at the time as it lacked uniformity, but towards the tail , it developed into a triangle, and so the last dip failed support as well. Good targets from this. First the triangle at T1, and then the Bull Flag at T2, which clearly failed.Ideal entry? At the pullback to support from the bull flag resistance break line, 9715 ish... So with T1 at 9740, we had to get past 9732. That was tested once and then broke- a good chance now that 40 will be met. So, onwards, looking for T2.Well, it didn't happen. What did happen was the normal ND top with an unusual dip in the middle peak. ( we normally get a blip) Out for 50 ish. Looking again at the criteria for a short off an ND top, the support break was just above the 100MA, with a swift drop to below and a pullback. Then some dithering around the 100MA that shouldn't have caused anyone concern...before finally dropping like a stone, back to 9650 and closing the gap. I'm not one for following gap closing strategies, but here it clearly occurred. Preceded by the obligatory PD bottom for a cover, and in case you forgot, 9550 was yesterdays resistance, and so became support today....
The pD bottom was confirmed by both the SR Switch and the divergence in volume on ES ( I'll post that later). That short was worth close on 100 points. Note the action around 32 and 64 today again. Long into the close? Well, maybe, as it broke through 64, but with so many points in the bag, why not make a cuppa instead. ? You might have bagged 5 points....
Note the SR Switch resistance line is drawn in hind sight. In real time, the line was higher, touching the actual peaks and did not clearly show the SR switch. If you only took the peaks from 18:45, then you would have seen the SR Switch.