Anatomy of Today’s Price Actions

Today was a boring inside day with absolutely no due action items as far as swing trades were concerned.   I decided to just watch the SPY chart and do some paper trading for fun.  Then I realized today’s intraday chart showcased a lot of typical price actions and setups, so I annotate it for what it’s worth.

Referring to the yellow numbers annotated in the charts:

  1. (and 0) During the 1st hour, reversals often work well for scalps.
  2. H1 long.  It corresponds to the resumption of trend after the first pull back.
  3. Open range (OR).  The 2 horizontal magenta lines define the range attained during the first 30 minutes of trading.  They define good pivot points for intraday trading.  In this case, the upper range served as good resistance most of the day.
  4. Channel overshoot.  The green long tail that overshot the lower up channel line typically hints that prices want to stay within the channel.  In this case, the set up failed.
  5. Trend line and channel break.
  6. L1 short off the 20 MA.  As the trend wasn’t strong, it didn’t do much.
  7. L1 short off the 20 MA.  Much better results on the 2nd signal and stronger trend.
  8. Lunch time lull.  Lots of price overlaps.  Avoid trading during lunch hours.
  9. H1 long.  This was the first pull back after the rectangle breakout.  In this case, the set up failed.
  10. H2 long off the 20 MA.  As always, the 2nd try is more reliable and yields better result.
  11. OR break.  Break of the upper OR line is bullish.
  12. H1 long.  With strong trend, H1 is good for a scalp.
  13. The projected upper channel.  The green dash line is replicated from the solid green line and serves as a good price target for exit.
  14. L1 off the 20 MA.
  15. Closing dip.  Everything goes.  In this case, we had both the OR break and channel break.

 

This was the forth day in a row with late day weakness.  However, with the prices grinding without significant correction, the oscillators have been in the process of recoiling– not what the bears want to see.   Once the oscillators reset, the bulls could rocket another leg higher.

Portfolio Value: $128,200

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2 Responses to Anatomy of Today’s Price Actions

  1. GreedyKojiro says:

    Facebook: Like
    Google+: +1

  2. Frank says:

    very nice education. Thanks

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