The market was spooked this morning with negative news for financial and tech stocks. However, the market has regained much of its earlier loss.
I am playing with a new indicator, which is setup for a 1 minute chart (see code below). This indicator calculates a Pivot (Yellow/Magenta Line) and a 20 period Exponential Moving Average (EMA) (White Line). The Pivot is the sum of the Highest High of the last 8 bars, the Lowest Low of the last 8 bars and the close of the current bar divided by 3. When the Pivot is less than the 20 Period EMA, it is Magenta. When the Pivot is greater than the EMA, it is yellow.
For shorting, I wait for the market to make a new pivot low, retest to the high side and then begin trending down indicated by the Pivot color change, which is where I like to short. Long trades are just the opposite. The $TICK is a good confirmation of a new trend developing.
Charles
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