17-NOV-2015 | ES
1) In this morning's example of a head & shoulders pattern using a 4 tick range bar in the forward e-Mini S&P 500 electronic futures contract, the ES had been in a downtrend since 8:45 a.m. this morning.
2) A reversal in MacDaddy occurs after the head. This reversal is accompanied by a decrement in WIND from red to blue. This reversal in MacDaddy and the decrement in WIND point to exhaustion.
3) Our right shoulder occurs and 9:54 am.
4) Higher Highs in MacDaddy begin ocurring just after the right shoulder. These Higher Highs are accompanied by uptick ratios and an increment in WIND from Blue to Green. These events point to new fuel.
For a deeper dive into how to use Better Data trade the Right Shoulder of a Head & Shoulders pattern click here.
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