Emini futures scalp and swing trades

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Nasdaq weekly charts. On the intro of this page I list some of the common fib extensions and the common AB/CD fib ratios.

First a quick look at the move from the 2016 low to the 2020 high in Feb.
There are 3 things I like to look at when looking for confluence in patterns and those are
1. AB=CD (Black lines)
2. AB/CD (also called the thunderbolt pattern in green)
3. Fib extensions
Another one you can throw in is the consolidation break out, typically the size of the consolidation is followed by the same size move up on a break out (orange boxes)

Then the green rectangle is know as the PRZ (potential reversal zone)
Add to that in Feb we had an unprecedented amount of unfilled gaps on the SPY chart (I think there were over 15 gaps and virgin points of control) that had never gotten retested. So that was already a recipe for disaster.

The red arrow is right at the bottom of the PRZ, so from a technical point of view even if you never listened to the news or if you never knew about the covid virus, 9770 on the NQ was an area where a technical trader would have started to look to take profits and would have been expecting a pullback.


So now let's look at the current chart based off the 2018 low.

The one thing that is different is that point C on the green AB/CD pattern is at .786 instead of .50 fib level which just gives us different targets on it and the fib extension pattern which goes to the 1.27 now.

This time when you draw out the PRZ we see price made it to the top of the zone and a bit higher, but keeps pulling back inside it.

So one can say that from a harmonic look at things we are due for a pullback.