Potential Trade

I haven't been able to trade very much lately due to overnight work shifts and sleeping through the market hours. So I have decided to post potential trades that I would take from time to time. In hindsight, yes they will look good and all but when the market is live.. it's a different story altogether. Nonetheless, we will be looking at the most common setups/patterns that trigger me into the market and I hope to hear your setups/patterns/indicators that also point out the same exact move in the market. When there is an opportunity and more then one system/trader recognizes it then there's hope for us. :)

April 02, 2008
Today the futures were a bit slow and sideways due to the large move yesterday. It seems like a pause day as the market adjusts to the changes happening and balances out.

My potential trade came at 10:10 AM ET. As you can see, you have to be really patient with futures as they aren't like stocks where you can enter and exit on small 'cent' movements. If I had logged on in the morning I would've sat there watching the market until 10:10 AM ET today waiting for the right move.

Here's ESM8 5-Min.

• Two bounces off .. confirming resistance. [Yellow]
  
• M shaped pattern with ST having /\ shape on second leg touching oversold (exhausted) [Yellow]
  
• A hammer patterns that follows with a big drop. [Yellow]
  
• Divergence in stochastic as the price action moves higher. [Blue]
  
• First exit target broke through. [Green]
• Since the drop became steep and the stochastic was falling sharply I wouldn't have anticipated a large follow through in this move and would've exited as the ST reached undersold and turning up. [Yellow Box]
• This would've been a good move as there would be no heat taken if entered late as well.
• NQ confirmed the double top as well.