SPY with TICK below..
Area of interest not highlighted includes around the 9:20am point, strong volume on a re-test of the o/s_high.
High TICK of the day at the o/n_high, followed by a negative TICK divergence.
The midpoint acted as support with a second test showing a low TICK of the day on a higher low in price, followed by a lower low in price and higher low in TICK.
Price tagged a 50% extension of the overnight range which coincided with a gap fill.
A key for the above chart to define the horizontal lines and dots. For further explanation, see this link:
Advancing/Declining issues trended up all day after starting off strongly bearish. Worth noting how the gap fill corresponded with a touch of the zero line on the A/D.
Up/Down volume trended down most of the day with the exception of the mild squeeze mid-afternoon.
SPY 15-min & 5min with 3/10macd. Drawn on the 15-min are two Fib projections; one based on the momentum gap down and pullback, which could have been considered a bear flag, however the selling was capped at the 50% projection. The next projected from the low of the day to the initial swing high and down to the midpoint. Price achieved the 100% projection which corresponded with the 50SMA, a gap fill, and the 50% projection of the o/n_range (as shown in the chart above).
The highlighted region on the 15min indicates the 3d criteria. I took two entries in anticipation of this setup, one around noon and the other about an hour later. The noon long entry I exited with a small loss.
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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