Today’s Other Reversal Play
After a gap down open, off a worse-than-expected employment report, the stage was set for Opening
Reversal patterns. Trap Doors, FlipTops, and ORs were abundant, but
if for some reason you didn’t get to participate, or just wanted more reversal
entries, all you had to do was wait. Reversal entries were still there to be
taken later on in the session, but this time we were acting as sellers. After
market participants thrust the markets higher, and the initial buying binge wore
off the stage was set for short entries off of reversal patterns from session
highs.
12:03:41
Intraday Setup Alert
The S&P500 ETF (SPY)
has put in a 1,2,3 lower high reversal pattern. The SPY is up .34 at 93.15.
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Our second post, which updates the situation, goes out a bit later on.
12:48:45
Intraday Update
The S&P500 ETF (SPY)
has worked out handily from our 1,2,3
post at 12:03. Initial risk on the trade was .15, so with trade management
strategies ala Haggerty, the first half would have been
bought in at 92.85, and the next portion (1/2) at 92.70. The balance is up at
breakeven, or maybe a more aggressive exit such as a break of the newly
established downtrend line. The next support on the intraday chart comes in at
92.50, which marks the 62% Fibonacci retracement level of the day’s trading
range. The SPY is now down .32 at 92.50.
It might not have been as dramatic, or as
profitable as the OR’s, in this particular case, but if I want drama I’ll go
watch CNBC. If I want a well defined, high probability setup I’ll go and trade
the
1,2,3 any day of the week when given the opportunity.