Intraday Bias: Emini S&P S2 And Beyond (Signal ID – S2 Day)
By Lawrence
Statistics on RTH days where ES open below pivot, never traded at or above pivot and breakdown below S2.
There is a good reason why I often tell newcomers not to pick bottom hastily . This is one of them.
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Comments
To take advantage of the eventual continuation beyond S2 on an S2 -Day it would be interesting to know what the characteristic initial bounce up is from S2 as a strategic short entry intending with 73% odds to exit two points below S2. I suspect it would present a very nice risk reward ratio to capitalize on the initial expectations of long side scalpers buying at S2 given they expect a conventional reversal. Am I right in assuming there is a predicable bounce when S2 is first hit?
It depends on the S2 was traded thru or gap down there.
If you are getting a quick drop since open straight down to S2 (e.g. 5 pt straight down), it is likely to expand to quickly to fulfill the S2 – 4 pts target with minimal pullback.
I wish I’d read this four years ago…