SPY opened right on top of a 50% retracement today, as measured from Monday's high to yesterday's low. I've included the pre-market in this chart below to illustrate how price used this midpoint as a pivot prior to the open. Also included is a set of Fibs measured off of the PDH to PDL (yellow 50% line), also giving the pre-market a nice S/R pivot to work off of:
While on the Open, using a set of Fibs to measure the PDC to today's Open, price quickly achieved a 100% extension off of today's momentum gap:
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.