With the US Dollar Index completing its daily Bull Flag, the Euro completed an opposite bear flag. Both currency indexes are at key inflection points, so let’s take a quick look at the key level to watch now in the Euro Index.
If you feel like the market is in Déjà Vu mode intraday, rest assured that you are picking up on a repeating pattern so far over the last three trading days, particularly for intraday traders.
I always enjoy showing clear examples of trading concepts such as divergences, and today gave two solid examples of the dual Momentum and TICK divergences preceding intraday price reversals.
In fact, the absolute low and high of the session was formed with such a dual divergence.
After completing a perfect bull flag (in pure text-book example) as expected, the US Dollar Index is now forming a bearish ‘sell’ signal at the target of $80.50, which is worth our attention.
Pardon the purposeful alliteration, but let’s look at the Daily Dollar Doji Sell Signal:
It’s hard to come up with a good title that gets you to read a post about “Fibonacci Confluence,” but it’s an important and useful tool you can learn – if you haven’t already – that can help you uncover possible targets for intraday traders to play for, and also areas of hidden resistance (or support) that sets up a reversal trade when combined with other indicators.
Let’s take a look at today’s Fun Fibonacci Confluence in the intraday SPY.
It’s true that failed trades sometimes can teach us more than successful trades, especially if we take the time to learn what went wrong – as in “Did I make a trading error” or “Did the market do something unexpected?”
There was a particularly high probability trade set-up that triggered late Friday afternoon that failed due to the afternoon surge, but there were a few hints and lessons we can learn from this experience, so let’s take a look!
I always enjoy highlighting good educational examples that occurred during a particular trading day – if anything to archive it – and today gave us a great example of trading a Bear Flag structure intraday… actually the whole day!
Let’s take a look at the 5-min and 1-min intraday SPY chart (identical on the @ES futures) chart for a fun lesson on flags.
Admittedly, it’s not the most exciting blog post title, but I always enjoy highlighting quick tips whenever possible on intraday trading tactics, and Monday’s action gave me a great chance to share a quick example of a near-perfect intraday Fibonacci Confluence.
I wanted to show a quick chart of the current mid-day SPY (S&P 500 Index) on January 14th to highlight a good example of price compression/consolidation which is often a precursor to a price breakout in one direction or the other, according to the “Range Alternation Principle.” Let’s take a look at the current intraday chart.
It’s time for another check-up on intraday market internals in the S&P 500! Market Internals – looking under the hood of the market – can help warn (foreshadow) turns in price in advance. As such, it is important to keep tabs on key market internals as an intraday trader, or even for a swing trader.