Confused about which way to Trade Today?

From a Bull’s Eye – SPY:

Are you confused about which way to trade today or the market direction?  Are politics and unknown world events confusing you about trading day-to-day?  What do I do when the market is week and yesterday’s price action shows strength.

The simple answer is just to look at the charts.  So let’s take a look at the SPY chart, yesterday’s open was above the previous low and yesterday closed was above the previous candle and high.  At the end of the day, the SBY closed up $2.06 or .89%  that’s a good sign for the Bulls at least for that day.

As as a swing trader was looking for price to swing higher, therefore, we must be concerned about resistance and what lies overhead.  For example on the daily chart price has moved below the 50-day simple moving average and has not crossed back above it.  Also, the T-Line is below the 34 exponential moving average on the daily chart.  Starting with the March 1 close, you can see the down resistance line pointing out the failed highs. Three intraday charts that I watch closely in times of confusion is the 30-minute, 60-minutes, and 2-hour charts.  On all three the SPY has moved below the 200-period moving average.

All the above factors are what I would take into consideration when looking at the SPY chart.  In my humble opinion price can certainly go higher but the BULLS must get through the resistant hurdles mentioned above.

My conclusion is simply to wait for confirmation.

FREE Trade Idea – BANC

BANC has recently moved over the 200-period M/A and above the left shoulder of a Head and Shoulder pattern. Price has broke out of the most recent consolidation and showing signs of bullish movement.

Spotlight Trade – SHLD

SHLD has risen 53.77% from the time we mentioned it to our members as a possible trade idea.  Candlestick patterns, chart patterns, price action support and resistance and simple logic, is what we look for in a chart.

(RBB) Rounded Bottom Breakout

The Rounded Bottom Breakout (RBB) is a pattern that Rick Saddler, founder of Hit & Run Candlesticks, recognized and named for its rounded bottom appearance on the daily chart. In many cases, it looks like the letter “U” with a flat bottom. This is because price drops down during the downtrend, it then rests or stops dropping for awhile and then it starts to move up.

The Rounded Bottom Breakout (RBB) is a great chart pattern that signifies that a downtrend has ended and an uptrend is beginning. Traders call this a “trend reversal” pattern. So, the RBB is a type of trend reversal pattern. There is no guarantee that this or any other pattern works every single time, but as you learn how the pattern develops, you can understand why the odds are stacked for a downtrend reversal.

Investing and Trading involve significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is not financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service

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What is a Trade Idea Watch List?

A trade idea watchlist is a list of stocks that we feel will move in our desired direction over time.  That time could be one to 30 days for example.

From that watchlist, we wait until price action meets our conditions for a trade.

© 2007 – 2017 Hit & Run Candlesticks INC. – Right Way Options – Strategic Swing Trade Service – Trader Vision – All Rights Reserved. Terms of Service Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Rick Saddler, Doug Campbell or this website is not financial or trading advice. All information is intended for Educational Purposes Only.