Today (August 4th) gave us yet another powerful example of the “Three Push” Reversal trade in the SPY and @ES futures which was confirmed with a ‘three push’ divergence both in the momentum oscillator and more importantly in the TICK. Let’s take a look.
I wanted to show a chart of some of the better trading opportunities that presented themselves during today’s intraday trading, so as to serve as a reference to see more examples of these trades and patterns. Here’s today’s structure (Rounded Reversal) that offered a limited number of good set-ups.
Today’s price action held a lot of lessons for apt traders – let’s take a look at the SPY (US Market proxy) and the intraday chart to see what quick lessons we can learn from today’s price action – technically a Trend Day Down.
What a day! We got an unexpected “Trend Day” up which just so happened to form a text-book complete Elliott Wave pattern. Let’s take a look and learn from some of today’s lessons, including a “Three Push” pattern and Bull Flag.
This morning’s price action gave us an ideal, if not perfect, example of how to trade a “Bull Flag” price pattern. Let’s take a look at the 5-min SPY and learn how to trade this powerful set-up.
In a quick pre-market post, I wanted to show the SPY 15-minute structure which has a possible complete fractal Elliott pattern combined with a “Three Push” Reversal (divergence) reversal pattern in the TICK.
Each day I write a ‘daily summary’ I call my “Idealized Trades” reports (which will be available for subscription by next week) and I wanted to highlight a few lessons from today’s (June 22, 2009) intraday Type III “Trend Day Down” in the SPY 5-min chart.
I mentioned last night in a lesson/example on intraday Elliott Wave that a fractal 5-wave structure had completed. If we look up to the 15 (or 30) minute intraday charts, we see another ideal example of the expected Elliott pattern. Let’s see it as another example to try to learn this concept of how momentum lows and divergences fit into an Elliott pattern.
What a day! Let’s learn a few critical lessons from today’s trading activity, particularly in regards to how Momentum fits into Elliott Wave, how bear flags are confirmed with dojis, and more!
Just a moment ago, an ideal bear flag trade completed on the intraday chart of the SPY. Let’s take a quick look at it and learn how Fibonacci could have helped time entry into this trade.