SPY going up to 593 by middle of AprilThe market is going to be bullish after the bearish move we just witnessed recently. Typically, I switch to the weekly format to see a larger move. You can see on the weekly chart, the Stoch RSI is turning bullish. I recently made a 3-day format which shows the indicators are already showing a bullish trend. I will post the 3 day chart/indicators as well as the weekly chart after this chart in my notes.
TARGETS:
53 point move: 599
1.618 move: 593.77
11 bar moves: April 17
**If it hits one of these targets, I am out of my trade.
** I will keep a close watch when the SPY hits 1 fib retracement at 575
** I changed my wording from 'day' to 'bar' moves
STOPS:
1) the low of the previous Heikin Ashi candlestick,
2) 2 red Heikin Ashi candlesticks,
3) a specific dollar amount for a total loss for my trade or
4) a specific dollar amount per contract.
**If it hits one of those stops, I am out of my trade.
I am using the Heikin Ashi candlesticks.
1) They show more of a directional movement within candlesticks.
2) They tend to filter out the market noise so you can see the market direction better.
3) It reduces false signals, allowing you to stay in the trade longer.
4) And, it gives you a smoother appearance making it easier to see trends and reversals. (This information is from Dr. Keith Wade who speaks at the Wealth365 Summits.)
Typically, I would wait until there are 2 green daily Heikin Ashi green candlesticks before entering.
I still tend to switch back and forth between Heikin Ashi candlesticks and regular candlesticks since regular candlesticks are what I am familiar with and have been using since I started trading.
I personally find:
* the 5 minute indicators typically represents what will happen in the next half and hour.
* the 10 minute indicators typically represents what will happen in the next hour.
* the 30 minute indicators typically represents what will happen in the daily.
* and, the hour indicators typically represents what will happen in the next week.
But right now, I am fine tuning my indicators and looking at the 20 to 25 minute indicators to precipitate a daily move
I use the MacD, the Stock RSI and the DMI to assist me with the direction of the market. Hopefully, I can explain these indicators more in the future.
Ask me any questions or point out anything you see wrong, as this is the only way we learn.
Happy Trading!
