Market Overview Technical Analysis

E-mini Russell 2000 (RTY): Order Block Identified

  • There is a powerful order block at $1,900 that we are watching closely.
  • Potential long opportunities found on the daily chart.
  • Fisher Transform analysis on the 4-hour chart.

Order Block At $1,900

We learned a lot about order blocks from Jipson’s interview; if you haven’t seen it, you can do so here. He withdrew over $15,000 from his funded trading accounts, and once I saw how powerful order blocks can be, I knew I had to introduce them into our daily technical analysis.

That said, there is a clearly defined order block at $1,900. There have been a few occasions where RTY has wicked into that level and reversed shortly after. At the moment, the price is about 2.94% away from that order block, but we can reasonably expect that if the market does rally back into it, there could be a higher-than-average amount of selling hitting the market.

The Trend Line

There is a trend line that started in October and has successfully acted as support multiple times as the market traded toward the order block mentioned above. This gives bulls a potential long opportunity with stops below $1,800 and a target above $1,900.

RTY daily chart showing orderblock and trend line
RTY Daily Chart

Fisher Transform Analysis

When the fisher transform indicator is applied to the 4-hour chart, it gives us a very interesting picture of how great it can be to enter into retracements. 6 out of 6 times, the market price has pulled back to the trend line mentioned above. The Fisher Transform indicator went below -1.50, and when the trigger line (Orange) crossed above the blue line, a brilliant entry for a long trade was triggered. Now, with the Fisher Transform in the exact same position, is it expected to occur again?

RTY 4 hourly chart showing fisher transform
RTY 4 Hourly Chart


Bulls have been in control of RTY since the beginning of October. We know there is no such thing as an indefinite trend, but the question arises whether this is the end of the trend or simply another long entry point. As long as prices remain above $1,800, we can safely assume the trend is bullish for now.