A bullish Homing Pigeon candle pattern has taken shape on the SPY today (likewise for the Q's, DIA, & IWM). Similar to a Harami reversal pattern, the Homing Pigeon merely calls for a close lower than the open on both candles. Confirmation of a bullish reversal is required, and one would be looking for at least a close above today's range.
To further strengthen the case for a bounce in price from here, there's a reverse divergence present (higher low in price, lower low in momentum), and price looks like it closed on top of a support level.
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 firstname.lastname@example.org
I am always open to questions, comments, or suggestions on how to improve this blog.