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MES Elliott Wave Wave3 Breakout Short 2R - Rates Up Gap Up
A public playbook for the MES Elliott Wave Wave3 Breakout Short 2R - Rates Up Gap Up Strategy Lab published edge.
27 trades / 59.3% win / 2.90 profit factor / +8.74 avg pts.
What This Setup Is
An Elliott-style short continuation setup that uses a confirmed impulse, controlled retracement, and Wave 3 break.
Why It Fires
After the first impulse, a controlled retracement can set up the expansion leg. The Wave 3 break confirms short momentum is back in control.
Exact Trigger Checklist
- Chart: MES 1-minute bars during the New York setup window.
- Build the pattern before entry; do not label it after the move has already worked.
- Required filter: regime_rates+gap_bucket=up+gap_up_medium.
- Short only after the trigger confirms and acceptance holds.
- Use the tested 2R model and invalidate above the setup zone.
Good Conditions
- The impulse and retracement are visible before the trade.
- The retracement stays inside the tested structure window.
- The break confirms continuation rather than late chase.
- The filter bucket agrees with the wave direction.
Avoid Conditions
- Wave labels only make sense after forcing them onto the chart.
- The retracement fully invalidates the first impulse.
- The trigger fires after the expansion leg is already stretched.
- The market is chopping through overlapping pivots.
Setup Anatomy
Step 01
Step 02
Step 03
Tier 2: MES Elliott Wave Wave3 Breakout Short 2R - Rates Up Gap Up. An Elliott-style short continuation setup that uses a confirmed impulse, controlled retracement, and Wave 3 break. Filter: regime_rates+gap_bucket=up+gap_up_medium. Research sample: 27 trades, 59.3% win, 2.90 PF, +8.74 avg pts.
Trading this setup inside a funded account? Run the funding readiness check, compare the timing against the Trading Sessions Guide and the New York session guide, then compare prop firm rules before you size the session.