1. On the 15min ES chart (left chart) the Squeeze was 9 bars long (remember 8 bars is the average Squeeze) so I figured a possible reversal was near.
2. The STOMO on the 15min chart was reversing off deeply oversold levels
3. The candlestick on the 15min was a pretty clear hammer
(So everything on 15 min chart lined up for a reversal – this was the signal)
4. On the 1min chart (right chart) Squeeze reversed momentum at 10:49am EST
5. On the 1min chart STOMO reversed from oversold at the same time and broke the -40 at 10:51am
6. On the 1min chart, got a Supertrend buy signal at 10:51
(This was the trigger)
Sold a 15wide put spread with the short at the 2SD. Target was 50% winner or 2X loser
Trade Details:
