• Free Book
  • Store
    • Books
    • Free First Chapters
    • Free Newsletters
  • Recent Articles

TradingMarkets.com

Quantified Stock Market Trading Strategies & Systems

  • Home
  • New Trading Research
  • Education
    • Articles
      • Connors Research
      • ETFs
      • Options
      • Stocks
      • Volatility
    • Trading Lessons
    • Connors Research
    • Glossary
    • Interview Archive
    • Videos
  • Python
  • Quantamentals
    • Quantamentals: The Next Great Forefront of Trading and Investing
    • Quantamentals Resources
  • Courses
  • Store
    • New Book! The Alpha Formula
    • “Buy The Fear, Sell The Greed” – Best Seller!
    • Swing Trading College 2019
    • Trading Books and Guidebooks
    • Street Smarts
    • Online Trading Courses
    • Private Mentoring with Larry Connors
    • Customized Trading Research
    • Amibroker Strategy Add On Modules
You are here: Home / Day Trading / Trade the Core Price Action

Trade the Core Price Action

January 16, 2014 by Kevin Haggerty

The SPX resolved its ST/OB condition by making a 1768 low at the 50DEMA on 12/18/13, and then advancing +4.6% to a new bull cycle high of 1849.44 on 12/31/13 to close +30% [29.6] on the year at 1848.36. Congrats to the Fed, or should it be said the master of the Ponzi Scheme.

The most accurate correlation for 2013 was the Fed’s Balance Sheet and the SPX, but you certainly can not say the same for economic reality and the SPX. The U.S. index funds crushed the active managers as a whole, and until proven otherwise 2014 starts out with the same theme. This was evident as equity trading revenues for the major sell side firms were down significantly in 2013.

The SPX closed at 1848.38 yesterday which is essentially unchanged from the 2013 1848.36 close. The price action for the most part in 2014 has been on light volume and narrow range until the -1.3% decline on Mon and +1.1% reversal on Tues. The SPX price action appears to be mostly computer driven and will probably remain so as long as the Fed continues to manipulate the market, and the Obama administration policies crowd out the Private Sector.

Regardless of the computer driven market the high probability low-stress day trading strategies continue to provide ample trading opportunities on a daily basis.

I have included several examples of actual trading setups from the last two days. The ACN setup is what we call a 1st CBO [consolidated breakout] to new intraday highs from a tight pattern and the stock made a good move as it advanced to the +2.0 Volatility Band level:

ACN15

MMM broke it’s down trend line from the previous day and formed a 123 Higher Bottom setup, which was also a Gap Pullback [GPB] as it pulled back from the 135.67 high to 134.77 The trade result was an advance to the +1.5 VB level:

MMM14

LYB was a tight [relative to its volatility] opening range contracted volatility pattern which expanded to the +2.0 VB level [1 Day +2.0 Standard Deviation]:

LYB14

There is a certain criteria for Focus list trading stocks, and also other specific pattern guidelines, in addition to symmetry that supports the trading decision, but these are just three examples to give you an idea of some contracted volatility setups. Trading contracted and expanded volatility price action will always be a core staple for High Probability Low-Stress Day Traders.

Filed Under: Day Trading, Recent Tagged With: Day Trading, SPX, Stocks

About Kevin Haggerty

From 1990 to 1997, Kevin Haggerty served as Senior Vice President for Equity Trading at Fidelity Capital Markets, Boston, a division of Fidelity Investments. He was responsible for all U.S. institutional Listed, OTC and Option trading in addition to all major Exchange Floor Executions. For a free trial to Kevin’s Daily Trading Report, please click here.

Buy The Fear, Sell The Greed

Buy The Fear, Sell The Greed

Swing Trading College

New Book From Larry Connors and Chris Cain, CMT – "The Alpha Formula; High Powered Strategies to Beat The Market With Less Risk"

We’re excited to announce the release of a new investment book written by Larry Connors and Chris Cain, CMT. The book, “The Alpha Formula; High Powered Strategies to Beat The Market With Less Risk “ combines… Hedge fund legend Ray Dalio’s brilliant insight into combining uncorrelated strategies… With new, minimally correlated, quantified, systematic strategies to trade… [Read More]

Buy The Alpha Formula Now

Connors Research Traders Journal (Volume 57): 7 Real-World Reasons Why Short Strategies Should Be Included In Your Portfolio

In our new book, The Alpha Formula – High Powered Strategies to Beat the Market with Less Risk, we show the benefits of including short-strategies in your portfolio. As a reminder, building portfolios should be based on First Principles – otherwise known as truths. These truths are: Markets Go Up Market Go Down Markets Go… [Read More]

Company Info

The Connors Group, Inc.
185 Hudson St., Suite 2500
Jersey City, NJ 07311
www.cg3.com

About Us

About
Careers
Contact Us
Link To Us

Company Resources

Help
Privacy Policy
Return Policy
Terms & Conditions

Properties

TradingMarkets
Connors Research

Connect with TradingMarkets

Contact

info@cg3.com
973-494-7311 ext. 628

Free Book

Short Term Trading Strategies That Work

© Copyright 2020 The Connors Group, Inc.

Copyright © 2023 · News Pro Theme on Genesis Framework · WordPress · Log in