Price Action is a trade purely base on Price movement.
Sentiment is Market mood at the moment.
Divergence between Price Action and Sentiment is the powerful setup for Day Trading ES.
The logic behind this setup is:
When the price break the SR, there's only 2 things will happen, continue or bounce. If the price continue then there is a big chance for a pullback. The best setup is a pullback because we already know the market direction and avoid the first breakout that may become a fake breakout.
However, a pullback sometimes very tricky to catch because it may become a shallow pullback or a deep pullback or even reverse. So here's a sentiment may become in use, formed as TICK.
As you can see at the picture, after a Support Breakout, there will be a good pullback. Market already on bearish mode because of the breakout. However there's some bull that hoping a reversal may occur. The aggresive entering bull reflect at the increasing TICK. But it's also may become a reversal IF the Positive TICK is also on the Green Candle. We must look the Divergence where the Bull Enter but The Candle is Red, reflecting the winning of Bear. Because the market is still on Bear Mode (still below the Support Line), then the power of diving south is amplified by the runaway Bull selling their bet.
The Stop Loss is 1 or 2 ticks above the red candle. And the risk-rewar ratio is greater than 3:1. A very lucrative setup I must say :)
Another Valid Setup:
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