I renamed today “TICK Divergence Tuesday” in honor of the numerous TICK Divergences that gave valid trading signals on April 14th’s intraday trading (in the SPY).  Let’s look at these TICK Divergences, two bear-flags, and a 5-wave Elliott Pattern that guided the structure of the day.

(Click for full-size chart)

The main purpose of this chart is to notice the (at least) seven TICK Divergences (on the 1-min chart) that formed key swing highs and lows of the day – all of which set-up aggressive trades and confirmation/non-confirmation as the day’s structure developed.  Take a close look at each divergence – there’s no need for me to discuss them all.

I did want to highlight two other structural points in the day -

First, we had a Dual Bear Flag that completed to form the Intraday Lows.  Normally, you don’t get such fractal Bear Flags -  you usually only get one per day.  The “Measured Move” of the first Bear Flag formed the “Pole” of the second Bear Flag – that’s odd.  Both flags met and exceeded (slightly) their price projections.  Also, an “ABC” 3-wave corrective structure formed inside each flag.

Speaking of corrective structures, we see a 5-wave Elliott-like formation (pattern) that moved from the intraday high to the intraday low.

I was able to have a high degree of confidence (though not certainty) as price completed the following converging patterns at the intraday low of $84.08 just after 1:00 EST:

5-Wave Complete Elliott Wave Structure
Four-Swing Positive TICK Divergence
“Three Push” Pattern (was technically a “Four Push” Pattern)

I’m sure there were other signs of confirmation there, but those all jumped out at me in real-time, signaling an exit to any short positions and an aggressive buy signal.

That’s exactly why I do these intraday reports, both for myself and for readers.  The more times you see these patterns, the better you’ll be in real-time to act on them as they develop.  Also, you’ll have to confidence to act (put on a trade) because you’ll get the sense of “been there, seen that, done that” and it will feel natural to you to enter and manage your trade more appropriately.

I’ll soon be offering formal write-ups on the day’s action highlighting as many objective trade set-ups and patterns that I find – “Daily Idealized Trade Summaries” – so stay tuned for that!  Feel free to pass on any comments or suggestions.

Corey Rosenbloom
Afraid to Trade.com

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

Travel to the LA Trader’s Expo in June to hear Corey speak on “Idealized Trades for Intraday Traders”