ES 1H Challenge
Past challenge from 2026-03-05. See the correct answer and explanation below.
SCENARIO
ES is at 5,480. It has made a clean series of higher highs and higher lows on the 1H chart over the past 3 sessions. The most recent pullback found support at the rising 20 EMA (5,460). A bullish hammer formed at 5,460, and price is now pushing back toward the recent high of 5,490. Volume is increasing on the bounce.
Market Context
Strong earnings season. Breadth is positive with 70% of S&P 500 stocks above their 20-day MA. No economic data releases until Friday.
Key Levels
Classic trend continuation setup. Higher highs and higher lows with support at the rising 20 EMA. The hammer at support with increasing volume on the bounce confirms buyer commitment. Breadth and fundamentals align. Enter long with a stop below 5,455 (below the EMA and hammer low) targeting 5,500 for a 1:2 R:R, with potential to trail to 5,520.
Prop Firm Implications
Trend-following with the EMA is one of the safest strategies for protecting TopStep trailing drawdown while making steady progress toward the profit target.