A day for scalping.
Here are some snapshots which I found relevant throughout the day.
Charts arranged by S&P500 advance/decline differetial (left), the SPY (middle), and NYSE TICK (right)
First, about an hour into the day. A/D pullback to zero on extreme TICK reading was a good fade.
Next, a consolidation on the A/D line with a wedge in the SPY on TICK divergence.
The ensuing "rally"/squeeze back to the A/D zero line coinciding with the previous SPY breakdown point. Interestingly, a very large block trade at these prices and extreme TICK ended up foreshadowing a fading interest in higher prices.
Finally, later into the day price broke down and all extreme +TICK readings worked for a good fade (arrows down closely align with block trades, seen at the very bottom of the middle chart).
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.
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