Trading the bearish trend on the YM emini and congestion phases

After a dramatic move lower for US indices driven by the indecisive words of the FED, it was interesting to see how the markets would react a day later, and bearish sentiment remained firmly in place throughout the session, initially trading in congestion before developing a solid price waterfall lower. One question often asked about congestion phases is how to identify these phases, and whether they are accumulation, distribution, or merely a reversal or pullback.This is all about Wyckoff’s second law of cause and effect.

In this session we were once again trading the YM emini and as the session unfolded so momentum in the bearish trend developed too, gathering speed. And if you don’t have a full blown futures account, the multi asset MT5 platform is a great alternative.

About Anna 2016 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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