Yes hitting the black line means its buy time. But be careful as you need to have a very tight stop incase if the BLACK support line doesn't maintain support. It would be better if you can hold your greed and wait till it breach the red resistance line for a better long trade.
If $SPY BREAKS THIS BLACK LINE, THEN SHORT
In terms of systems theory, this is a great example where this may or may not go. This is a very stable signal rarely seen with random signals, such as the market. Therefore, math becomes more important than ever! And convergence/divergence becomes 'less' meaningful. I'm waiting for the green or red line to break and believe this will signal THE move. bullish or...
This chart shows current long term and short term views of the broad markets using SwingVector algorithm which is the 3rd day of experimentation in charting it out and letting the gaps be filled real time.
Frame your trade is more important than what indicator to use or what line to draw.
Today, we saw the break and hold below of an important long term trendline in effect for months leading up to now, as well as several strong points of support. Rationale for short: - Break of lower bear flag channel trendline & hold - Successful retest and rejection of trendline. - Broken support at 206.80s and 206.00s - Huge bull rally immediately and...
This is the short term view. I will post the long term as well. The past four market days have seen a large increase in volatility, as the bears and bulls fight for control in this range. Today saw a large gap down, and a reasonable attempt to stay above yesterday's lows. These lows happen to be very strong resistance from all of last week as well. The price...
From the past two appreciable declines in 2001 and 2008, there appear to be some trend lines worth watch, in case current price action follows similar patterns.