Micro E-mini S&P 500 Index Future Breakout Failure Retest

There are good and bad setups in trading. In today's post, I will share with you a good textbook price action setup that involves trend breakout, retest of the extreme, and two-legged pullback entries.

In the morning session, the bears were in control, that is, price were making lower highs and lower lows. There was a downward trend I was watching that started shortly after 11:30. The price tried to breakout higher but failed shortly an hour later.

The price then went lower to retest the extreme (prior low) and bounced from there. A good double bottom formed that alerted me that a short push higher is coming.

On the first bar after the double bottom was formed, I quickly noticed the momentum of the bulls with the fair value gap forming. That's when I started counting. The next pink bar made the first entry short and went higher. At this point I am waiting for the second entry short to show up.

After the first entry short bar, two bars formed with a fair value gap. I placed my entry 2 ticks below the low of the third bar of the fvg formation. I saw a good probability that the second entry short may happen there and it did.

I made a good scalp on that trade. That's it for today's post. Until next time.

I am not a professional investment adviser and my opinions are based on my own technical analysis. Please consult an investment professional before making investment decisions.

Do your due diligence if or when placing a trade. All ideas stated here are my own and do not represent trading or investment advice.