Let's start with a few ES charts:
The above chart is a little busy, but it shows we've reached a low volume by price area, which often means price would hang out for some time to fill the void with more price discovery. Also note the massive volume in the area of 1200 on the ES. My take is we get there, we'll see plenty of sellers show up.
Let's zoom into the hourly:
Looks to me like we got a tad bit of rejection in the 1170 region. Could be those from the 1200 area just itching to sell. Note also how we tagged the channel line, and then fell to the next lower one, broke through and back tested and got rejected? A touch of selling maybe?
Now let's zoom in once more:
Don't know about you, but it's looking like the recent parabolic move on the ES might just finally be a little long in the tooth.
The other thought I wanted to share was about listening to the market. When we trade, we all have TA of some sort that catches our interest be it setups, indicator's patterns are what have you. The one thing I think we sometimes miss in our rush to trigger a trade, is hearing (although with our eyes) what the market is telling us. No matter what system you chose to trade by, it all boils down to filtering when to take the trade, and when not to.
For some it's a purely a mechanical process, for others something completely different. My suggestion is watch closely how price and volume are playing out at any given moment when you near a point you might trigger a trade and see if you have a sense of it, and what it's telling you. If focus your attention on hearing it's message, and are successfully you'll often have both better confidence and success in your trades.
