Yesterday's Trade: Compression Builds Power — Part 2
Waiting created the opportunity, and we locked in profits
When I wrote Compression Builds Power (Oct 7) ES was sitting inside one of the cleanest bull-flag formations we’d seen in weeks — six touches, balanced momentum, and RSI coiling neatly between 40 and 60. The market looked primed for expansion.
We got expansion alright.
Just not the direction most expected..
The triangle that everyone read as a continuation pattern instead turned into a failed bull flag.
ESDaily readers were advised a false breakout was likely…
We waited for the Opportunities inside the October 7 Gameplan
Price broke the lower boundary early Tuesday, driving straight from 6803 → 6747 and triggering both Opportunity #1 (6766 FBD) and Opportunity #2 (6754 FBD) from the Oct 7 ESDaily Gameplan.
I entered both, giving an average long of 6756.54.
The reaction since hasn’t been the explosive reclaim that defines a textbook failed breakdown.
Instead, ES oscillated in a tight 10-point range into the close Oct 7 and spent the overnight session grinding higher into the Oct 8 open — a slow correction within what still looks like an impulse → correction → impulse sequence.
Because the move lacked emotional reversal, I adjusted.
T1 was taken early at 6771 (≈ +15 pts) and the stop raised to 6751 to protect realized gains.
The 45-minute chart makes it clear: the pattern failed, structure rotated, and price began digesting under the broken flag base.
Patience here matters more than prediction.
Most assumed the flag would continue north, it didn’t.
Then many bought the reclaim into chop, we waited.
That waiting created the opportunity and we locked in profits
The lesson from Part 1 still stands: compression builds power.
The difference now is that the release has started, and emotion is finally entering the structure.
Our job isn’t to chase it.
It’s to stay ready when it misfires again.
Precision over action.
Preparation over reaction.
Join me inside the ESDaily Chat to take a closer look at how this setup continues to evolve, and how we’ll position for the next move when the market tips its hand.