Enlarge any chart by clicking on it.

Unless otherwise specified, ALWAYS use the 15min chart to enter my recommended plays because
CONFIRMATION is a MUST. In other words, you need to see a 15min candlestick that CLOSES beyond
the entry point, then enter when it moves 10cents after the high/low of that candlestick.

Thursday, April 19, 2012

SPX

The wild ride is here! It's now survivor of the fittest. The market is now at the point whereby wider stops have to be put in place because false activations are going to be the order of day (if volatility continues). That is the biggest risk with the wild swings. Now is the time for me to start having dreams of the market chasing me as I start wondering if the market will open with a huge gap up or down.

To take full advantage of the current environment, use a higher time frame to give sanity to a lower (insane) time frame price action. In other words, if the 5MIN chart becomes wild, focus on the 30MIN chart as that will significantly decrease or eliminate the noise of the 5MIN. If the 30MIN is very volatile, switch to the DAILY, then WEEKLY, and then the MONTHLY. (But no time frame can be ignored).

SPX-DAILY LINE

SPX-DAILY II

SPX-DAILY I

SPX-30MIN LONGER TIMEFRAME

SPX-30MIN SHORTER TIMEFRAME

SPX-5MIN
Posted by at