ES - Volatility Contraction Pattern

מעודכן
Expanding on the Volatility Contraction Pattern trade into XMAS.
תמונת-בזק

1. Strong Underlying Demand
  • Elevated Relative Volume compared to prior days’ average
  • A premarket gap or explosive move off the open
  • The potential for a breakout on higher time frames
  • Underlying significant support (20D-50D moving average)
  • Inability to breakdown


2.Recent Overbought / Supply Pressure
  • Higher lows
  • Extreme price contraction on low volume


3.Diminishing Suppy Characteristics
  • Begin to see the wave tightening
  • Consolidation into 20D,50D Moving Average


4.Decreasing Volatility
תמונת-בזק

5. Explosive Breakout (TBD)

!!!Not Trading Advice. Just a Bag Holder!!!
הערה
Looking back at the past quad witching. it looks most like June 18th this year.
תמונת-בזק
הערה
DEC 20. 2019. Gap down in morning. early AM rally.
תמונת-בזק
הערה
Loaded up. Now we just have to hold the 50D.
הערה
could still see a flush into the end of the day. Hedging my long position with shorter dated OTM puts.
הערה
following up on the end of day flush idea. You can see in DEC 2018s correction ended shortly after the quad witching that year. It to had a pump from 10am to 11am then flushed the rest of the day into the following week before the bounce.
תמונת-בזק
Beyond Technical AnalysischristmasrallyTrend AnalysisVCPvcppattern

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