Futures went into megaphone strategy — how to play

Jan 29, 2021

At the beginning of the week, ES_F established few trendlines creating a big probability for the start of the megaphone pattern, and we rocked it in the previous idea:

We will be looking at the bottom of the BB channel and allow it to extend a little bit to the downside whereas we know MMs like to kill stop-loss positions before bumping futures back into the game.

Watch the levels around 3690 for the long position until mid-bb or a little bit above it to the previous Fib column which yet still in play.

Also, be aware of rising VIX which can incur some down-pressure to the equities, however yet Fed promised to buy as long as investors are at risk.

Invalidation probably at 3670, however practical bottom 3640

Jan 29, 2021

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Zoom out and we find that 3HR BB can provide us with some bottom for the dip if it will come with the London session

Jan 29, 2021

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Currently bouncing of 2HR Bollinger, next is or range trade or 3H Bollinger with a trendline.

I would expect a push lower where the dip can be bought.

Jan 29, 2021

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Closer to target, 3690 - 3680 for buy

Jan 29, 2021

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Target printed, need to hold for taking it to the mid-BB channel

Feb 2, 2021

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Target 1 reached for the trade, basically above the mid-BB is where the things can get shaky, and probably will.

Congrats to all followers for the Idea, we rocked this one