- Technically the MKT is in play after producing a big positive signal. On the SELL side REVERSAL strategies can be executed off the UP and +c. Expectations should be for an immediate exhaustive turn with the MKT quickly moving away from the area. Avoid SELL UP FADE strategies even with confirmation. SELL DP BREAKOUT strategies are not recommended but can be used as a signal for a FADE against the DIR.
- On the BUY side accept FADE, REVERSAL and BREAKOUT strategies above the previous session's low point. UP BREAKOUT strategies should just "go", so do not risk much. Be wary of these strategies early in the session and look to exit on the 1st break in structure. BUY DP FADE strategies are recommended over REVERSAL strategies as the MKT is expected to hold higher structure and any failure should be considered a potential negative corrective shift high.
Today's PRICE MAP Performance for SP
Wrap Up
- In a BULL TREND ACCELERATION market state, our expectation is for a follow through on the underlying BULL TREND. In a TRENDING market state, our optimal tactics include the moving average crossover tactic, as well as the building of positive market structure (higher highs and higher lows). It is also important to note that the ADX indicator can provide us with a valuable signal when the value of the ADX crosses above the 25 level. This indicates the market has entered a "trending" state. Notice on our S&P 500 chart today that the ADX crosses from below to above the 25 level right as the faster moving average crosses from below to above the slower moving average. This confluence of technical tactics gave us the confidence needed to accept the BUY UP BREAKOUT strategy and profit from the move in the S&P 500 today.
No comments:
Post a Comment