Premium Members Harmonic Trading Chart Preview for ES_F

 

2014-08-17_ES 6t Yhoo Using an STRenko 6 bar chart, price shows during globex hours, ESU14 is testing the 1961 Line in Sand level.  This means that above here invalidates the green colored emerging harmonic pattern, Bullish Gartley, and a hold above 1961 offers a long opportunity to a double PRZ (Potential Reversal Zone aka completion target for harmonic pattern) at 1974.25.  A double PRZ is a region of merged targets derived from different harmonic rotations offering a definite area to scale or prepare to exit from an existing long position or stalk a reversal trade, in this case a short position for a retracement mode of the harmonic pattern.

Currently, there’s potential pull back to key support test targets, namely 1954.50, 1950.75 or 1946.75.  A hold above the pull back targets offers a long opportunity to retest 1961 or better yet to 1974.75, 1985.75 or 1993.75, which happens to be another double PRZ target.

Indications also show that price has a probability of stalling at 1961 if fails to pull back, however, there is a counter trend trade opportunity with a hold below 1961 to those pull back targets, a higher probability of downside bias occurs below 1946.75, below there has the ideal target of 1931.50, and this test completely changes the dynamics of the larger brown colored Bat pattern.  So a short position has a scaling point at 1931.50, downside continuation has the ideal target at 1890.25 for the double bottom test and scaling points at 1923.50, 1913.25 and 1900.25.  Keep in mind that scaling points have the capability of being reversal points, thus the reason to be prepared to lock in profits, scale or exit at them.