SPY should go up tomorrow ....I am using the Heikin Ashi Candlesticks as I find you can see a definite directional pattern with them on the chart itself. Typically, you should wait until you see two green candles, but if you look at some of the indicators on the 6 hour chart, you can see that it is indicating a bullish move. The 7 hour and daily indicators should follow soon. (I will post these hourly charts following this idea)
After the US election last month, the market shifted a little in the amount of days the SPY went up. In the month of November, the market only went up about 7 days but it did hit an upward move of 32 points and the Fibonacci number. I believe the market was shifting in November to get ready for the US Thanksgiving and Christmas as well as other upcoming events such as the Fed Meeting in December and other events in the January.
The SPY will go up until about Nov 25th before moving sideways for a few days while US Thanksgiving is nearing. After US Thanksgiving and Black Friday, the market will continue to go up until Dec. 9 to 11th which is about a 12 to 14 day move using the green Heikin Ashi candlesticks. This was the typical length of time of the move of the previous months with the exception of November.
In the last few months, I have observed that the up trend goes up between 12 to 14 days. So I will be out by Dec 10th.
If the market hits the 1.619 Fibonacci, which is about 609, I am out.
The SPY has been usually moving about 32 points per month on average. If it hits a 32 point upward move (616), I will be out. (but it will hit the 1.619 Fibonacci line before it hits the 32 point move)
I believe the SPY will go up for the month of December and January before going down in February. I have been noticing that the market goes up for about 3 months before having a more of a downward trend in the fourth month. The market should technically go down after the middle of January and for approximately a month. During that time, the market may shift a little in time. (I am looking forward to that month to learn more.)
If you look at the indicators on the 6 hour charts, specifically the DMI, Stochastic RSI, and the MacD, you can see that they are starting to shift to indicate a bullish move. Typically, I used the half hour, the hourly and the four-hour chart indicators to confirm that this is indeed a bullish move. I need all those indicators to align to confirm a trend. I only trade with the strength of the trend not the retractions. And typically (not always) I wait for at least 2 green Heikin Ashi candles to confirm trend before I enter. These are my rules that I follow.
As I have said in my previous charts, I find the 5 minute indicators show what will happen in the next half hour, the 10 minute indicators show what will happen in the next hour, the half hour indicators show what will happen in the daily charts and the hour indicators will show what will happen over the next few days. (My opinion, not fact)
I trade simple ... if I can't see the trade in a few simple steps, then this is not the trade for me.
Also, I explain my trades in more detail for me, not for you. Repetition is the key for me. If I repeat it over enough in my head, it will more likely stick.
Happy Trading everyone!!! :-)
And here's to making oodles of money or at least learning something if you don't.
