Friday’s intraday trading action in the SPY gave us a great opportunity to see an example of at least three non-correlated trading strategies/methods coming into ‘confluence’ to create a low-risk, high probability trade set-up. Let’ see it in action!
I wanted to show the morning “External” or “Lengthy” (multi-swing) negative Momentum and TICK divergence that preceded a mid-day retracement which served as an excellent low risk, high probability short-sale opportunity. Let’s see it on the 1-min SPY chart:
There’s an interesting convergence of two ‘advanced’ technical trading methods that show potential overhead resistance – or upcoming technical breakthrough – at the 10,500 on the Dow Jones Index – the upper trendline from an Andrew’s Pitchfork and the 100% Fibonacci Price Projection. Let’s see them both.
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Over the weekend, I read an article at Phil’s Stock World written by Trader Mark entitled, “What the Heck is Going on with Mondays Lately? Always Up!” I initially had skepticism after reading about the recent tendency for Monday’s to be big up days, but after today’s action, I’m giving it a second look.
Friday’s action gave us one of the best examples of the ‘Rounded Reversal’ Day Structural developments. Let’s take a quick look at both the intraday SPY 5-min and 1-min chart and use this day as an educational reference of this concept.
November 17th’s intraday SPY (and other Index ETF and futures) action gave us an excellent example of the “Rounded Reversal” structure along with a positive TICK and multi-swing positive momentum divergence marking the absolute low of the day and forecasting an intraday price reversal. Sound complex? Let’s look at it step-by-step.November 17th’s intraday SPY (and other Index ETF and futures) action gave us an excellent example of the “Rounded Reversal” structure along with a positive TICK and multi-swing positive momentum divergence marking the absolute low of the day and forecasting an intraday price reversal. Sound complex? Let’s look at it step-by-step.
With the current rally progressing on lower volume, I thought I would take a moment to look back at a few historical market tops – or prior to deeper pullbacks – to see how volume behaved just prior to the top.
Let’s see five historical peaks in the Dow Jones Index and pay special attention to the trend of volume prior to these peaks. Each chart was created with TradeStation and you can click to zoom-in on the chart.
This morning’s action gave a great example of the “Divergence” lessons, in that dual TICK and Momentum divergences can forecast intraday price reversals of either short or intermediate term degree. Let’s take a look.
Today’s intraday price action gave me a chance to show you two specific Fibonacci Retracement grid examples of how to use the “Fibonacci Retracement” tool to find potential trade entries or reversals in price. Let’s take a look at them and learn how to use this tool.