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The ES gapped down to 6839 at the futures open against the backdrop of recent coordinated bombing of Iran by the US and Israel. During the London afternoon session, the price moved swiftly upward, closing the gap at 6856, which became the high of the session, before dipping to fresh lows.


At the cash open, the price surged upward quickly. I observed the price action but struggled to find a comfortable point to enter, given the aggressive accumulation by buyers. With the fundamental understanding of TLBA's supply-demand dynamics in mind, I anticipated some level of buyer exhaustion after the significant upward move. Eventually, my TLBA setup formed, and I decided to take a quick scalp, entering at 6872.


I set a protective stop behind a thick layer of seller liquidity, given the swift, sustained, aggressive move of buyers

I set my target at 6859, just above the high of the London session, where the gap was closed, expecting a reaction at this key level. The price reacted at 6860 with a stop run just before reaching my target. However, it returned to my target, allowing me to exit the trade successfully.


It was fascinating to observe the price action, especially on higher timeframes, and I thoroughly enjoyed the experience.

Insights