A gap up today into R2 (on the SPY), followed by a gap-fill and slow recovery to the upside. The early morning price structure was a "W" type of double bottom. Buying the break of the W's middle apex brought price back up to the opening range (and R2 area). The higher low that followed the selling of the highs gave price an extended move higher for the day.The TICK, even at it's weakest point didn't get all THAT weak.Also, at the lows of the day Advancing issues were STILL outpacing Declining, a sign that perhaps people were buying this dip.
The 15-min chart gave us a bearish divergence later in the day that coincided with a doji shooting star/gravestone-type candle, bringing price back down to the 20-EMA.
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
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