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 an uptrend since Wednesday May 31st 5:00 am. ET.
2) The left shoulder with a left strength of at least 5, occured at about 9:52 am. The market consolidates in a 6 tick range for 25 minutes ( 10:06 am ET - 10:30am ET). This consolidation is our head. 2101.5 is the high of the consolidation and it was tested/hit 5 times. We are now looking for tape (order flow events) that will infer a market turn around and the break out of this consolidation. The Consolidation breaks toward the down side. We have lower lows in MacDaddy, followed by a pull back in WIND (Red to blue), three -1 standaerd deviation downtick ratio events and a High Frequency Sell Surge(HFT-SS). We are now looking for a right shoulder that occurs with concommitant 'tape' (Order Flow Events), and a left strength of at least 5.
3) A right shoulder with a left strengh of at 7 occurs at 10:49 a.m. ET. At the right shoulder we have a -2 Deviation Number of Trades Ratio. Immediately after the right shoulder we have a reversal in MacDaddy.
4) New fuel indications occur as the move progresses. MacDaddy shows lower lows. We also have two -1 standard deviation Downtick Ratio Events. We have a High Frequency Sell Surge(HFT-SS) occur at the end of the down move.
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