The Trade Setup is Binary 5/1/2023

A trade setup is binary; it either materializes or does not. The only way to determine this is to take the setup, regardless of whether it appears promising or not. A multi-day setup commences with the first step of taking the trade and adhering to the stop rules, among other things. At the start of the day, the bullish trend was apparent, with all waves indicating support. However, the fast swingarm’s breakdown indicated weakness, since the slow swingarm remained unbroken.

Personally, I believe in respecting the fresh zone 4s. The number of times they play out and provide significant results is much higher than the times they fail. At this point, no harm has been done, and control is still maintained, allowing the mind to remain calm and relaxed. One should wait for another signal to consider entering the zone and repeat the process continuously. It is not difficult; the most challenging aspect is accepting the rule and consistently following it, not adhering to it sometimes, and ignoring it at other times.

It’s important to remember that within the same group, some members may choose to go long while others may go short, and that’s perfectly acceptable. The critical factor is to enter either position from the designated zones and follow the rules accordingly. Trading is not a matter of being right or wrong; it’s about taking appropriate action based on a well-defined plan. Therefore, take action and adhere to the rules of engagement, and ultimately, things will work out as intended.

By following the rules today, three trade setups emerged during the US Session so far. The first one offered a potential gain of 10-15 points, as the price tested the 1-minute zone 4 and rebounded within 30 minutes. As the fast swingarm broke down, the likelihood of backtesting increased, and it happened as anticipated (The second potential trade arose from zone 3, and zone 4 was not reached, meaning that this bounce could have been missed). Finally, the last zone 4 short emerged. Overall, the day’s trading with just one ES yielded minimal profits.

Zone 4s (15 Minutes and the Fast and Slow 1 Minute)
The 15 Min. should bounce to the 1 Min Slow. Potentially.
I was looking to buy zone 4 of the 15 but missed it. I was 1.5 points below the bounce point.
4200 Target.

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