Compression Builds Power — Reading Price and Momentum Together

We're coiling for the next big move. Which way? Momentum guides.

When ES tightens up, most traders call it chop.

But compression isn’t noise.
It’s structure building.
It’s energy being stored.

Right now, ES has been coiling in a clean bull flag.
Six touches so far, three on each side.

That’s the kind of symmetry that tells you it’s maturing. We’re closing in on the seventh touch, and that’s usually where the market decides.

Look at the chart below.

You can see the formation starting Thursday October 2 through this morning

High side: 6800, 6795, 6791
Low side: 6741, 6754, 6766, 6774

Interestingly, the low side of the bull flag all represent FBD’s.

At ESDaily we caught the 6741 LTB October 2 and the 6757 FBD into 6754 October 3.

RSI’s telling the same story.

Instead of breaking down, momentum has been compressing between 40 and 60. That’s digestion, not exhaustion.

Every dip toward 40 gets bought, and each push to 60 fades just enough to keep balance.

When price compresses and RSI holds mid-range, that’s the setup before expansion.

It means both structure and momentum are in sync.

Neither overextended, neither unwound.

You don’t need to predict the breakout.
Just prepare for it.
When this resolves, the next leg will be fast and obvious.

Momentum’s not gone…
It’s being stored.

It’ll look obvious in hindsight.

But the real work is happening now, in the coil, when nothing feels certain.

The real work is in the preparation.
The real work is in exerting patience until high reward:risk opportunities present themselves.

You can join me now to find the next opportunities.