Double Top ES #F 080306

The 8min showed a good sell opportunity off the 8min chart. Watching for shamu to take us lower. Lets see if we get it.

We are in a new wave now .... so is it a wave 4 for higher? or a bigger retracement wave for lower? Watching higher timeframe patterns closely for the market to tip its hand as to which way it wants to go.

There are signs of weakness in the shorter timeframe charts currently. So any shorts from higher up could be held for lower.

Remembering what I was taught about market structure, I always expect some kind of retracement after either 3 waves or 5 waves. So, I can use this to my advantage to anticipate and stand ready for JOT (Jump on Trend) entries.

Today can be a potential trend day down based on the higher timeframe chart patterns that I see.

IF I catch a JOT entry early enough, I can hold it for much lower (trending day). However, if I am late to the party, THEN I must only try to scalp it. Whether I am early or late to the party is dictated by the pattern development off the higher timeframe charts, such as the 60min and 30min.

Knowing characteristics of Elliott Wave also helps me to determine potential targets. For example, Wave 3 is never the shortest wave .... so IF I see a big wave followed by a small wave, THEN I have to be aware that the smaller wave CANNOT be a wave 3, hence I should hold for lower (if short). Also, I have to keep in mind that waves can have extensions, so this is where higher timeframe pattern and momentum can help me decide whether to hold a position for longer or not.