Featured Trading Setup - Consecutive Up/Down Bars

Featured Trading Setup - Consecutive Up/Down Bars

This is a simple setup that fades consecutive bars going against the market structure. Let's take a look at this example in the 5-minute ES futures chart. (Click on the image to enlarge.)

1. This bulllish swing kept pushing to new highs in the trading session.
2. When it finally paused, it fell back orderly with four consecutive bars. The pullback did not affect the bullish market structure and had the support of three broken resistance from the last session.
3. Against this bullish context, this up bar was a reasonable long setup bar.

Consecutive up/down bars may also mean new opposing momentum. Use the market structure of support and resistance to decipher it.

Good trading!