Friday's ES Price Action

I posted before the open of the NYSE when I change to the September contract and you can see the zones I was watching. Prior to the open, I had seen price being held in a tight consolidation basing zone by limit orders, identified the Delta Divergence indicator.

I wanted to see which direction price broke from it, and to take trades in the direction of the break.  Price broke impulsively to the upside so I was looking for longs.  And the delta divergence indicator gave a buy signal on the 6 tick range chart (but not on 4 tick range) when price reversed to the zone. However, this proved to be a loser, if the signal was taken.

Price broke through the zone and continued the down move.  So my outlook changed to be on the short side.

I did take a long trade and scalped for 2 points, but then took a short with 2 contracts at a good supply level seen on the 4 tick range chart.  I scaled out on the first contract for 4.25 points and then closed the second contract for 7 points.  I did take a 1 point scalp short later on.

You can see these trades on the 4 tick range chart.  So some good trades taken using the Delta Divergence indicator. 

On Thursday, I said that price was at a supply zone, and I did not expect it to stop the up move as it was not 'fresh'.  I was wrong on that count.  I should know by now that a S&D zone, still remains until it is broken with force.

Price went down most of the day, but it looks like a corrective down move to me.  I have a demand zone around 1605 - 1610 and will see if we get buy signals there on Monday.  However, I will look to engage the down move while it is still in place.