Classic topping pattern on ES

[notouch]

On the daily ES chart we have a double top and a shooting star candlestick on high volume. This is a classic exhaustion spike pattern. If you look at the SP500 cash charts it's a classic shooting star candlestick. This all points to a pullback or at least consolidation in the days ahead.

[walterw]

Nice chart there Notouch... what would be your timing entry criteria in the case this starts heading south ? thanks Walter.

[notouch]

I wouldn't short this market right now. Waiting for strength to come in after a pullback to re-establish longs is the way to go.

[walterw]

I see... in the case it pullbacks, I asume you will monitor a fibonacci level or an adrew pitchfork for timing ?

[notouch]

Yes, and a bullish daily candlestick on high volume.

[malvado xetra]

notouch,

in my opinion this shotting star is not going to work as it uses to cause of the next things that I attach in the chart. please I would like to study my chart and tell me if you see different points. It would be very useful for me.

thanks
MX

[notouch]

High volume on a shooting star suggests trend reversal, not continuation. It shows there was a transfer of stocks from strong holders to weak holders. Anyone who follows VSA can see the bearish implications of that. Like I said though, I wouldn't short this market. It might just be a little pullback before another leg up.

[brownsfan019]

Nice charts notouch. As a candle trader myself (although I don't use daily charts) there could be a very aggressive short based on your shooting star with high volume. Obviously this would be an aggressive counter-trend trade, but there is a potential setup there for sure. I prefer to see some more bearish conviction before taking a short into that uptrend, but for those willing to be aggressive, I could see a short entry with a stop above the double top.

I guess I don't have the stomach or nerve to be shorting into this uptrend until there's some more bearish conviction. Of course, if the short works, getting in now is ideal, but I would not be willing to short just yet based purely on the candle pattern and volume.

[walterw]

	Quote:	malvado xetra
	notouch, in my opinion this shotting star is not going to work as it uses to cause of the next things that I attach in the chart. please I would like to study my chart and tell me if you see different points. It would be very useful for me. thanks MX

MX : On the cyan count of your chart dont you have the completion of a 5th wave ? meaning we could call a correction ?... and we have both analisis notouch (candle and volume ) and wave counts in allignment ?...

[malvado xetra]

In The Last Chart Cause Of I Have A Lot Of Information Inside I Draw The Last Wave Wrongly (the Light Blue One). Based On My Wave Counting Analysis The Correction Of The Past Wave 1 Has Finished (green Wave 2) And A 3rd Wave Is Beggening (green Wave 3).

A Shooting Star Seems To Be Formed But I Dont See It As Strict Shooting Star Pattern. For That Reason, This Shooting Star, In My Opinion, Could Be A False Bearish Signal (see The Charts)