darcy kincaid

SPY A 4hr chart perspective

BATS:SPY   SPDR S&P 500 ETF
196 0 0
Our previously published charts for SPY             LT             and 1 hr             time-frames have both hit their identified targets. We are posting a 4hr chart to illustrate further how an intraday setup plays out from the perspective of our analysis.

Keep in mind that this analysis is valid only for the time-frame chart that it is identified on, as is true of all charts that we publish.

The Intraday short that was identified Friday by our analysis is being sold and we have identified it's first target on the chart. Likewise with the 1st aggressive long that reached it's entry level in the last hour of trading today and has been bought prior to close.

How can this analysis be of benefit to you?

For the sake of illustration, let's suppose that you had our analysis available that identified the Intraday short and you entered a short position Friday at the level shown on the chart. Let's further suppose that you agree with our analysis that SPY             is in a LT             Bullish trend and that any short position should be considered as a counter-trend trade. As we have already stated in a previous post, we expected a pullback after the price reaches it's 2nd identified target.

When the price pullback reached the identified intraday long, your position would have been profitable by a minimum of $1 per share. Having identified the intraday long entry range and target, you now have valuable information that alerts you to the level at which aggressive buyers will be entering the market.

At this point , you as an intraday trader must make a decision based on the available information and your trading style. Do you cover your position and book the unrealized profit, or do you hold all or part in expectation of more downside? We have identified the first and second levels at which aggressive buyers will re-enter the market. Which do you think will prevail?

The vast majority of fundamental and technical analysts target either a short or long entry but never identify the opposing side of the trade, and there is always an opposing side to every trade. One of the advantages of our analysis is that whether you agree or disagree with our stated views on the direction of any stock , etf , currency, or future, the identified long and short levels are valid.

For instance, let's suppose that our analysis favors an in-trend long entry, but you disagree and are looking for a counter-trend trade. Our analysis will point out for you where other counter-trend traders will be entering the trade as well as the targets they will be pinpointing. Or if you agree with our analysis and enter an in-trend trade, you will know where to expect increased resistance as well as know the targets that are being pinpointed for each trade.

As a reminder, each time-frame has it's own entry and target levels and these only occasionally coincide with different time-frames.

We encourage you to watch the price action until one of the targets are reached. Notice the reaction as the different levels are reached and traded. Soon you will began to notice that in a high percentage of cases the market will react at the price levels we identify. This is true of all time-frames.

We have included some prior indentified levels on our published charts to aid in understanding how the identified levels targeted are either profit-taking or market targets. They are included to illustrate how identified trades work out. Though the majority of our published charts are Long Term time-frame, we do identify these same levels on all time-frames.

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