As Simple as it Gets

[theo]

This is way to basic for most of you but it may benefit a new trader. Friday was a VERY easy day.

The 8 min (8 min so you can clearly see the channel) ES chart below indicates a clear down trending channel. At the open we gap up and try to break thru the top of the channel and find resistance. Use SVOL and ADVV as a filter, which did not indicate an uptrend but instead both charts remained flat which meant the price would likely fall.

https://www.iwearit.com/charts/1_26_1.gif

On a one min it looked like this...

https://www.iwearit.com/charts/1_26_2.gif



This implies a gap fill open. Which we got and much more.

https://www.iwearit.com/charts/1_26_3.gif

[theo]

Fast foward to 2 PM...

Still in the same channel but finding support at 1422.50 area.

With Svol near hod and ES unable to take out the support after three tries, it looked ready to pop. I put in a stop-buy-limit order just above the downtrend line and continued to lower it as we went down between 12:15 - 2:00PM. I did not want to enter until the line was clearly broken.

https://www.iwearit.com/charts/1_26_4.gif


on a one min it looked like this...

https://www.iwearit.com/charts/1_26_5.gif


Then finally the pop....

https://www.iwearit.com/charts/1_26_6.gif