$SPY Trend Analysis DarkPools
Chart Overview:
Instrument: SPDR S&P 500 ETF Trust (SPY)
Timeframe: 4-hour chart
Indicators on Chart:
Moving Averages: Two moving averages, possibly the 8 EMA and 21 EMA, are visible and used for trend analysis.
Dark Pool Levels: Represented by white dashed lines.
Fibonacci Extensions: Horizontal levels plotted as profit targets.
Trendlines:
Yellow Lines: Represent a rising channel encompassing long-term price movement.
Red and Green Lines: Form a triangle pattern suggesting potential price breakout.
Volume Indicators: (Not directly visible, but implied in analysis as crucial.)
Key Observations:
Dark Pool Levels:
A level around 605 (BA SW 605).
Another level at 586.16 (BB SW 585). These levels often indicate significant institutional trading activity and are likely areas of support/resistance.
Triangle Breakout:
Price has broken out of a triangle pattern (green and red lines), indicating bullish momentum.
The breakout occurred after a strong push above the 597.12 - 596.11 zone, confirmed by the candle close.
Trend:
The price is trading above both EMAs, which signals bullish momentum.
The broader channel suggests an upward trend with potential consolidation at the top.
Targets:
Fibonacci-based profit targets are clearly defined at:
607.50
610.00
612.50
615.00
The first target (607.50) aligns with a critical resistance zone, suggesting potential short-term profit-taking.
Support Zones:
The previous triangle breakout zone (around 596.11) serves as a strong support.
The lower dark pool level (586.16) provides additional safety if the price retraces significantly.
Trade Idea:
Entry:
If not already entered, consider a pullback entry near the 597-596 range, which aligns with the EMAs and breakout level.
Profit Targets:
607.50: Partial profit-taking area; first resistance.
610.00: Secondary target if bullish momentum sustains.
612.50: High-probability target if momentum accelerates.
615.00: Final target aligning with the Fibonacci extension.
Stop Loss:
Close below 596: Invalidates the bullish triangle breakout.
Final Stop: Close below 586.16 (dark pool support), marking a shift to bearish momentum.
Risk Management:
Position size based on risk tolerance.
Risk-to-reward ratio should ideally exceed 1:3, considering a stop at 596 and initial target at 607.50.
Additional Notes:
Volume Confirmation: Ensure the breakout is supported by a volume surge to validate institutional involvement.
Dark Pool Activity: Watch for price action near 605 (BA SW) as it could act as temporary resistance.
Instrument: SPDR S&P 500 ETF Trust (SPY)
Timeframe: 4-hour chart
Indicators on Chart:
Moving Averages: Two moving averages, possibly the 8 EMA and 21 EMA, are visible and used for trend analysis.
Dark Pool Levels: Represented by white dashed lines.
Fibonacci Extensions: Horizontal levels plotted as profit targets.
Trendlines:
Yellow Lines: Represent a rising channel encompassing long-term price movement.
Red and Green Lines: Form a triangle pattern suggesting potential price breakout.
Volume Indicators: (Not directly visible, but implied in analysis as crucial.)
Key Observations:
Dark Pool Levels:
A level around 605 (BA SW 605).
Another level at 586.16 (BB SW 585). These levels often indicate significant institutional trading activity and are likely areas of support/resistance.
Triangle Breakout:
Price has broken out of a triangle pattern (green and red lines), indicating bullish momentum.
The breakout occurred after a strong push above the 597.12 - 596.11 zone, confirmed by the candle close.
Trend:
The price is trading above both EMAs, which signals bullish momentum.
The broader channel suggests an upward trend with potential consolidation at the top.
Targets:
Fibonacci-based profit targets are clearly defined at:
607.50
610.00
612.50
615.00
The first target (607.50) aligns with a critical resistance zone, suggesting potential short-term profit-taking.
Support Zones:
The previous triangle breakout zone (around 596.11) serves as a strong support.
The lower dark pool level (586.16) provides additional safety if the price retraces significantly.
Trade Idea:
Entry:
If not already entered, consider a pullback entry near the 597-596 range, which aligns with the EMAs and breakout level.
Profit Targets:
607.50: Partial profit-taking area; first resistance.
610.00: Secondary target if bullish momentum sustains.
612.50: High-probability target if momentum accelerates.
615.00: Final target aligning with the Fibonacci extension.
Stop Loss:
Close below 596: Invalidates the bullish triangle breakout.
Final Stop: Close below 586.16 (dark pool support), marking a shift to bearish momentum.
Risk Management:
Position size based on risk tolerance.
Risk-to-reward ratio should ideally exceed 1:3, considering a stop at 596 and initial target at 607.50.
Additional Notes:
Volume Confirmation: Ensure the breakout is supported by a volume surge to validate institutional involvement.
Dark Pool Activity: Watch for price action near 605 (BA SW) as it could act as temporary resistance.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.