I didn't trade the early swings because I just wasn't sure what the market was trying to do. I did trade a few scalp trades as the market wiggled around the VWAP line. I rather not say that the market is forming a topping formation, but that is how the market is acting today.
Something that I am experimenting with is the 6,20,16 MACD of the $TICK on a 1 minute chart. The MACD Line is not plotted. The light blue line is the 16-period EMA of the MACD Line, and the Histogram is the difference between the EMA and the MACD Line, also known as the MACD Difference. The yellow, dotted lines are the 1 Standard Deviation (780 Period) of the MACD Difference. When the MACD Difference reaches 150 or -150, many times this signals a temporary end to a market move.
This is just another way to spot a decrease in momentum, and in some cases a signal for a possible fade.
Charles
No comments:
Post a Comment