ES Ascending Wedge - Decision Tomorrow 8/5/2020
This is the ES at the 4 hour view.
The ES has been in a multi-day ascending wedge for the past 6 trading days. Ascending wedge end in two ways.
1) Blow off top pattern - The price can skyrocket temporarily, plateau, then fall rapidly. This is the more volatile and profitable scenario. If it chooses this direction, then you can easily scalp the rise then scalp the fall. The easier trade is to long that rise, take profit, then wait for the pullback for an epic bounce. Liquidity is still pretty high. The second option would be the smarter way of doing things.
2) Pullback - This is the more predictable, but less profitable scenario. The ES could just break out of the wedge and just do a simple pullback. Unfortunately, with high liquidity levels still going on, the pullback may also be limited again as the dip will be bought almost immediately. That would mean more flat, boring days ahead.
I hope it's the first scenario. That would get the VIX going and get the markets volatile again. Then some really good opportunities will arise from the fallout.
The ES has been in a multi-day ascending wedge for the past 6 trading days. Ascending wedge end in two ways.
1) Blow off top pattern - The price can skyrocket temporarily, plateau, then fall rapidly. This is the more volatile and profitable scenario. If it chooses this direction, then you can easily scalp the rise then scalp the fall. The easier trade is to long that rise, take profit, then wait for the pullback for an epic bounce. Liquidity is still pretty high. The second option would be the smarter way of doing things.
2) Pullback - This is the more predictable, but less profitable scenario. The ES could just break out of the wedge and just do a simple pullback. Unfortunately, with high liquidity levels still going on, the pullback may also be limited again as the dip will be bought almost immediately. That would mean more flat, boring days ahead.
I hope it's the first scenario. That would get the VIX going and get the markets volatile again. Then some really good opportunities will arise from the fallout.