3 Minute Chart of E-Mini S and P 500.
Yesterday (Friday) was a big down day with a high open and a low close. So we are expecting a rotating day today. A ROTATING DAY is one whose price will rotate around the open of the day. Today opened higher and showed price follow thru higher. These higher highs were NOT confirmed on the MACD. Since we are expecting a move back down to, and possible below the previous day's close, look for a short set-up. A short position could have been taken below 1068 on a break below the low of the third high. This bar also shows a tail which is a sign of sellers entering the market. Initially, place your stop loss above the high of this bar. Look to cover about a point above the close of Friday(yesterday).
Later in the morning, after price made a move below the previous day's close, a divergent buying opportunity presented itself. A long position could have been taken on break above the third drive to new lows. A stop would be placed below these lows at 10:51 EST. Looking to cover a point shy of the previous day's close. These trades are hypothetical and for educational purposes only. See hypothetical disclaimer at www.staffordtrading.com.
Yesterday (Friday) was a big down day with a high open and a low close. So we are expecting a rotating day today. A ROTATING DAY is one whose price will rotate around the open of the day. Today opened higher and showed price follow thru higher. These higher highs were NOT confirmed on the MACD. Since we are expecting a move back down to, and possible below the previous day's close, look for a short set-up. A short position could have been taken below 1068 on a break below the low of the third high. This bar also shows a tail which is a sign of sellers entering the market. Initially, place your stop loss above the high of this bar. Look to cover about a point above the close of Friday(yesterday).
Later in the morning, after price made a move below the previous day's close, a divergent buying opportunity presented itself. A long position could have been taken on break above the third drive to new lows. A stop would be placed below these lows at 10:51 EST. Looking to cover a point shy of the previous day's close. These trades are hypothetical and for educational purposes only. See hypothetical disclaimer at www.staffordtrading.com.
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