SwingTrends's Commentaries
S&P ES E-mini & futures US session review for Thursday 2nd July 2009
Good evening everyone. After a few tough days trading recently, the market finally opened up and gave us a fantastic trading opportunity today. Following the establishment of a 15min Gann swing downtrend early on in the European session, price then made a retracement to a role reversal area of S/R before rolling over to the downside en-route to our profit targets.
LARGER IMAGE: Click here
Following on from the in-depth discussions surrounding candlestick pattern profitability we have been having recently in the free Swing Trends live market analysis chatroom, today a perfect example of what I consider to be a very high probability candlestick play presented itself in confirmation to the newsletter trade.
Right on the pullback to the 917.5 role reversal resistance band, a “key reversal down” single candlestick reversal pattern occurred.
LARGER IMAGE: Click here
The reason this particular candlestick play represented a high probability play in my view is 3 fold:
(1) KRD occurred in line with trend as defined by 200sma(15)
(2) KRD occurred in line with 15min Gann swing trend
(3) KRD occurred at immediately underneath a band of resistance
This particular pattern becomes even more attractive in my view when one considers the potential risk versus reward this trade has to offer. Using a traditional candle pattern stop above the highs of the entry candle and an initial profit target at 912 and a further profit target at 907, a possible reward : risk ratio of 3:1 is found.
I hope you all have a great evening and I wish the American traders with us here at Swing Trends a fantastic holiday day tomorrow!
Tags: us-session-review | gann-swings | moving-averages | es15 | role-reversal | krd | trade-plan | profit-zones | 3-day-holiday
