Was dusting off an indicator that I stopped using for some unknown reason and was just looking over the past few week's performance in pairing it with the SPY. The indicator (found hear) brilliantly cleans up an otherwise noisy, and distracting, NYSE TICK.
Over the course of the past month what do we see? Surprise, surprise! Participation on the sell side with seemingly very little extreme upside TICKS.
Perhaps all the juice needed came on the 29th of November (extreme +TICK in ellipse).
It's all very simple in hindsight. The most recent lows (Nov. 16th) were made on an extreme TICK followed by a divergence. Since that point the lows (in price or the TICK) didn't go any lower.
The following are just a series of charts with some TICK/Price divergences. It's likely I may have missed some, but I'm putting these up simply because they are helpful to study.
The charts which follow overlap in date from the ones above, but I wanted to show some in a little closer detail. Also, I added a Fib. retracement based off of the first half of the day's High-to-Low range. When it comes time to positioning oneself for the close of a market, it could be as simple as realizing whether you're trading in the top or bottom 50% of the day's range.
There's a glaring "hidden" divergence in the chart below that is not illustrated, telling you that though TICK has made an overly dramatic lower low, price made a higher low, leading to a buying opportunity.
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at toddstrade@gmail.com
I am always open to questions, comments, or suggestions on how to improve this blog.
1 comment:
“Tick. Tick. Tick. That’s the Sound of Your Life Running Out.”
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