December - known as a bullish month very clearly appears to be in a downtrend now much to the dismay of calendar dreamers.
Although it is very common for December to be bullish that doesn't factor in whether the trend is in a bull or bear market and back in 2018 ES lost 17% in December alone!
Since October ES has been locked in an ascending channel which can be drawn in multiple ways as shown here. Both lower trendlines having relevance.
This ascending channel appears to have printed 7 waves up, much to the confusion of Elliott Wavers, and the whipsaw following the Powell speech printed the blow off top phase.
At the top both ascending channel trendlines were breached, but most importantly it pushed through the Supply Line that had not been breached since the when it was formed.
And so a Shakeout Reversal Pattern printed (SRP). This imo is the most important pattern in charting because it is a fake move in one direction to tap the liquidity of buyers-to-open trading the breakout and buyers-to-close getting stopped out, and they get trapped or removed from the market both at loss.
And this pattern tends to happen at major pivots so good chance this is one just passing here to see much lower lows.
So now ES finds itself hitting resistance and rejecting, it may chop a bit perhaps but this is now a strong downtrend.
Not advice
Although it is very common for December to be bullish that doesn't factor in whether the trend is in a bull or bear market and back in 2018 ES lost 17% in December alone!
Since October ES has been locked in an ascending channel which can be drawn in multiple ways as shown here. Both lower trendlines having relevance.
This ascending channel appears to have printed 7 waves up, much to the confusion of Elliott Wavers, and the whipsaw following the Powell speech printed the blow off top phase.
At the top both ascending channel trendlines were breached, but most importantly it pushed through the Supply Line that had not been breached since the when it was formed.
And so a Shakeout Reversal Pattern printed (SRP). This imo is the most important pattern in charting because it is a fake move in one direction to tap the liquidity of buyers-to-open trading the breakout and buyers-to-close getting stopped out, and they get trapped or removed from the market both at loss.
And this pattern tends to happen at major pivots so good chance this is one just passing here to see much lower lows.
So now ES finds itself hitting resistance and rejecting, it may chop a bit perhaps but this is now a strong downtrend.
Not advice
I'm taking a break from TradingView but you can find me every day in my Telegram Trading Group 🧐
Priority trades, round the clock updates and a 1 hour technical video per week 😼.
$50 per month 👍🏻.
Contact: t.me/dRends35
Priority trades, round the clock updates and a 1 hour technical video per week 😼.
$50 per month 👍🏻.
Contact: t.me/dRends35