The SPY put in a second push lower today. It's looking like $147.10-147-20 as resistance above and $145.75-146 support below. A move lower (whether a fresh or higher low) could give a decent 3-push setup. Price is still just consolidating after two large momentum moves higher.
While on the daily chart below, we have the 3/10macd fast line pulling into the slow line for the past 3 days. The 130min chart shows the 3/10macd being close to both the fast line and slow line crossing and the fast line about to turn green, which would hint at the higher time frame's (daily chart) fast line turning up.
What is taking place currently on the 130min chart is very similar to what took place on the daily chart back in august. The only difference being here we have a buy divergence on the 130min, while on the daily back in August we had a reverse divergence. However both were/are consolidation phases were price pulled back to a mean before continuing higher.
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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