Short ES Trade Recap

RipcordLoki
2022-08-23

Mon Aug 22

I checked and I did put out entry and subsequent adjustments of this trade in prior posts. Real-time trade posts will always have a time of day along with the date for verification purposes. I use a variety of criteria to take trades but the chart below shows a simple stochastic method that could have nudged you into this trade.

Stochastics, MACD, and RSI all work well to find potential setups. I like some price/indicator divergence. I also like to see some range compression after a nice move. Pessimism was thick going into late July. Misinterpretation of the Fed was all it took to ignite a nice little short squeeze from 3800 to 4300. At 4300, I felt the euphoria was way overdone and for some of the wrong reasons. It was an easy entry and frankly easy to hold as it gathered steam for the downside.

Good trading!

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Comments

  • HilaryWilde
    2022-08-25
    HilaryWilde
    You are right that divergence is a good investment opportunity.
  • Maria_yy
    2022-08-25
    Maria_yy
    The 4300 level really has a lot of momentum going down.
  • ElvisMarner
    2022-08-25
    ElvisMarner
    It is clear that Powell will not relent any time soon.
  • BellaFaraday
    2022-08-25
    BellaFaraday
    So you're shorting the stock market right now?
  • EvanHolt
    2022-08-25
    EvanHolt
    MACD is another indicator I use a lot.
  • Kenwen
    2022-08-23
    Kenwen
    k
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