However, it can be helpful by looking at the big picture. The chart below is a 5-minute SPY chart with 24-hour data. The settings for the top 3/10macd are such that it reflects a 15-minute chart, while the bottom 3/10macd reflects a 5-minute chart. The vertical dash line is the open of regular trading hours.
While on a chart which doesn't include the pre-market we had condition 1a. With the 1a criteria I'm looking to trade a breakout (base-break, etc). Again, not something that is hinted at on the 3/10macd because as we can see, the 5-minute macd pulled back well into 10am while price continued higher. While the 15-minute macd fast line moved lower throughout the day.
The overnight high came into play on a pullback in the morning, while the IB_high came into play late in the afternoon.
The daily showing us well back above the 20-day MA and approaching the top of the channel already. The faster time frame (130-min) showing a steep reverse divergence and looking a bit stretched.
No comments:
Post a Comment