14-JUN-2016 | ES - Long [S&P 500]

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 Downtrend since Monday June 13th 10:31 am. ET.

2)  The left shoulder with a left strength of at least 5, occurred at about 03:56 am ET.  The Head occurs at 04:45 am ET.  At the head we have a Sell Programs Waning order flow event. Immediately after the head we have a +2 Standard deviation uptick Raio, a Reversal in MacDaddy and MacDaddy Institutional becomes bullish versus MacDaddy Retail. We are now looking for a right shoulder with a left strength of at least 5 and tape in order to enter the trend.

3)  A right shoulder with a left strength of at 6 occurs at 5:24 am. ET. Our Right shoulder occurs concomitantly with a Sell Programs Waning and a Long Strong Tape Imbalance order flow events.

4)  Immediately after the right shoulder we have a reversal in MacDaddy, a +1 Standard deviation Uptick ratio, and MacDaddy Institutional becomes Bullish versus MacDaddy Retail. As the move continues we have a few "short" indications in the tape. Macdaddy continues to show higher highs despite these "short" indications.

06.14.16 1st right shoulder
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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