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.
To say I was impressed with the bullish action today is an understatement – I was astonished at the strength! Let’s look inside today’s intraday action to see how the Trend Day structure developed and what opportunities existed for profit – knowing how to trade a trend day can make the difference in a large loss or large profit the next day we get one.
Silver (and SLV) took a brutal hit today, and fell at one point 6% intraday. It provided an interesting structure and lesson in momentum lows and bear flags. Let’s see it as it’s developing. SLV (Silver ETF) 5-min chart: I’ve never seen so many bear flags in a single day (at least not that I…
Monday’s trading day gave us some interesting opportunities worth discussing, in terms of “Trend Day,” reversal, divergences, etc. Let’s step inside yesterday’s action to see key opportunities as they developed. SPY 5-min March 16, 2009: Looking at the 5-minute chart without the context of the higher timeframes reveals the day shaping up to be another…
We finally got that ‘oversold bounce’ we’d been anticipating – though that was an understatement! Let’s step inside Tuesday’s “Trend Day” action to see how one could have profited from the intraday structure and managed risk accordingly. DIA 5-min (March 10, 2009): First, the daily structure (in terms of two dojis in oversold conditions at…
Let’s look inside the price action of the 5 and 15 minute chart of the DIA to see the clues preceding the reversal down and also an example of an extremely powerful trend day. Let’s start with the 15-min structure that I almost highlighted to you last night: I almost pointed out the “Rounded Reversal”…
Friday gave us a solid, upward performance in the US Equity Indexes. Let’s zoom in to the 5-minute chart and learn a valuable lesson regarding Trend Days and Stop-Loss Strategy or Trade Management. DIA 5-min February 6th 2009: Friday’s action wasn’t an “Ideal” Trend Day, but a Trend Day it was. Most trend days open…
Friday gave us yet another “Trend Day Down” in the market – making two in a row – but there’s something quite interesting you need to review about Friday’s Trend Day action. DIA 5-min: Do you know what it is without looking? At 1:00pm, all short stops were triggered, knocking trend-day traders out of their…
One of the main points I’ve highlighted on intraday Trend Days is that you should remove all indicators (especially oscillators) from your chart and only use Moving Averages to guide your trading. This will serve as the explanation for doing so. Let’s use January 29, 2009 as an example using the DIA 5-min chart: You…
Thursday’s price action gave us yet another excellent example of a trend day, which offers us the opportunity to trade any retracement aggressively. Let’s look at the structure and key high probability trade set-ups that formed. DIA 5-min: The day started just as Wednesday did with a large (greater than $1.00) overnight gap. For the…