Trade on Cumulative Delta Divergence (Buyer Exhaustion)
ES Futures Contract
The market rallied after an announcement on Iran sent the index soaring. The price repeatedly tested the 6685-6695 resistance, and Friday’s high at 6685.50.
Formation of a bearish divergence with price rising and cumulative delta decreasing with aggressive sellers.
Position entered with one lot at 6697.75, a bit premature, and SL placed behind the high of the last candle at 6705.75.
TP placed on Pivot Resistance 1, not far from a large volume on the volume profile.
Position closed at 6675.
Trade Risk: 2.84R
Realized: -2.84R (+$1,137.50)
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