Potential Wolfe Wave setup in the SPY.
If you recall; Point 2 (which you can only find after points 1 & 3 have already been formed) does not have to be a long term trend reversal, only a significant swing high or low.
Point 5 marks the trigger "sweet spot" for a short where strong volume would be preferable.
While the red line projects the target.
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.