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so after markets opened back up at 6pm yesterday, we saw ES open at around 3843.
hour later, bumps against the 100 SMA, rejects, slides/chops down to 3830, tests SMA again around 10pm, chops for a few hours without ever breaking through, then continues to bottom out until 8am:
8am, MACD shows a move to the buy side and we break through SMA.
so this is where, if i'd been paying attention to this, i would have entered a long position. we have a really strong breakthrough of the SMA after a period of consolidation.
but this guy caught something really slick:
that white horizontal line starts on the left where ES failed to break through SMA and capitulated. this guy figured that this is logically where this formation will reverse.
aka a cup and handle:
https://www.investopedia.com/terms/c/cupandhandle.asp
so he entered a short position at 3835 and was able to ride it over 10 points, right down to where it tested the SMA.
naturally people started suck dicking him over it and he was just like 'what... this is really basic shit' and hes right. but so few of us took the time to study the charts this morning with the right eyes. like myself included.
but yeah i thought the physics of this trade was really beautiful honestly. very artful.
hour later, bumps against the 100 SMA, rejects, slides/chops down to 3830, tests SMA again around 10pm, chops for a few hours without ever breaking through, then continues to bottom out until 8am:
8am, MACD shows a move to the buy side and we break through SMA.
so this is where, if i'd been paying attention to this, i would have entered a long position. we have a really strong breakthrough of the SMA after a period of consolidation.
but this guy caught something really slick:
that white horizontal line starts on the left where ES failed to break through SMA and capitulated. this guy figured that this is logically where this formation will reverse.
aka a cup and handle:
https://www.investopedia.com/terms/c/cupandhandle.asp
so he entered a short position at 3835 and was able to ride it over 10 points, right down to where it tested the SMA.
naturally people started suck dicking him over it and he was just like 'what... this is really basic shit' and hes right. but so few of us took the time to study the charts this morning with the right eyes. like myself included.
but yeah i thought the physics of this trade was really beautiful honestly. very artful.
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