A ridiculously choppy day today in the SPY. For as many "First Cross" triggers that were given today there were just as many reasons not to take them. Here on the 5-min chart, we had an early short trigger (first red vertical line of today's session), however we had a bullish momentum divergence on the low of the morning which turned price around.
The second trigger was valid (first green vertical line of the day's session, and you could have scalped a little out of it, broken even or scratched for a small loss. The next two triggers were the same scenario as the previous long (scalp, break-even, or scratch for a small loss). Nothing seemed to work today, unless you were quick and in scalp mode. There was a "Slingshot" setup short (where the momentum makes a higher high, but price is unable to follow-through and puts in a lower high). This set-up occurred at the right shoulder of the inverted H&S pattern (yet another set-up that didn't fully follow through. My brain hurts from this session today.The 15-min chart showed us a short "First Cross" trigger and a bearish crossover of the 20- & 50-EMA's.
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 email@example.com
I am always open to questions, comments, or suggestions on how to improve this blog.