Looking Past The Open For Clues
Just as you refer to the daily chart for
keying in on high-probability trades, quite often we need to give the same
consideration to intraday charts as well. At TM, we refer to looking at more
than one day of intraday action as the extended chart. When the technical
supports are in place, but you don’t see the intraday pattern setting up
in order to confirm an entry, make sure you’ve also given the last one or two
sessions the respect they deserve…they might just give you that extra little
bit of support that you were looking for.
10:26:19
Intraday
Setup Alert
The S&P 500 ETF (SPY)
took out the August 22nd pivot highs before reversing in a Opening
Reversal TrapDoor pattern. This action has the index proxy now
testing extended intraday price supports and a 38% Fibonacci retracement from
the August 28th lows. With the intraday stochastics showing a potential oversold
crossover as the Spyders establish a hammer low off of the fore mentioned
technical supports, long reversals might be considered. The SPY is down .24 at
101.20.
By using some extended Fibonacci analysis from a
two day cycle, as well as the prior sessions highs, I was able to see clearly
what might have been otherwise hidden…a potential trade that was ‘already well
developed’, and ready for action.