Trading Plan for Tomorrow (October 23, 2024)Trading Plan for Tomorrow (October 23, 2024):
1. Bias: Neutral-to-Bullish
The overall bias is neutral-to-bullish, with the 60-minute chart showing a continuation of the upward trend, despite potential near-term weakness in momentum.
Expect some consolidation between 583 and 585, with the potential for upside breakouts if SPY manages to hold above 583.
2. Entry Strategy:
Preferred Buy Zones:
On pullbacks near 581-582, you can look for a reversal pattern on the 5-minute or 30-minute chart. A confirmed buy signal in these areas, supported by a cross-up in the MACD, will be ideal for entering a long position.
If SPY pulls back to the 578-580 range, this would offer a better risk-to-reward entry point, especially if support holds near these levels.
Breakout Buy:
If SPY closes above 585, you may consider a breakout buy, especially if confirmed by strong momentum indicators (e.g., positive MACD histogram on the 5-minute chart and strong volume).
3. Exit Strategy:
Profit-Taking:
For a long position entered around 581-582, consider taking partial profits near 585 or scaling out if resistance appears strong at this level.
If SPY breaks above 585, trail your stops to lock in gains around 586-587.
Stop-Loss:
Use a stop-loss slightly below the nearest support, around 580, if entering a long position around 581-582. This keeps the risk tight while allowing for volatility.
For more aggressive entries, like breakouts above 585, place stops near 583 to protect against false breakouts.
4. Indicators to Watch:
MACD Crossovers on the 5-minute and 30-minute charts will provide timely buy/sell signals, especially for short-term entries.
Volume and Volatility: If volume increases on a breakout above 585, it will confirm a bullish continuation.
RSI: Watch for divergences on the 5-minute chart. If the RSI dips into oversold levels (below 30), it could signal a strong rebound opportunity.
Conclusion:
The strategy for tomorrow should focus on watching key levels: 583 (current price action), 585 (resistance), and 580 (support).
Positioning should favor the upside unless key support levels break, but be prepared for volatility around these levels.
Use the 5-minute chart for refined entry and exit points, while the 30-minute and 60-minute charts guide the overall trend and momentum.
