Monday, July 18, 2011

ES, NQ, YM Futures Falling Wedge

By now you probably figured that I like falling wedge trade. It is a bullish reversal pattern. I like to wait for a breakout and buy a pullback to backtest of the wedge. ES, NQ, and YM are in this formation now. Obviously, falling may continue further, but eventually we will get a break. Shorts are to be trailing their stops just above resistance, and longs are to wait for those stops to be hunted, and pullback to be bought. Simple, easy, very rewarding with manageable stops. Be ready...

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