✅Tricky Waters: A Guide to Continuing our victories in the chop today
Don't be scared.
Let’s see what we can see as we break it down piece by piece. Our hourly is our blank canvass for each of these volatile days:
What should stick out to you immediately is the large gap looming that didn’t close yesterday. Let’s mark the gap entry and fill levels so we know the downside risk:
Now we want to get a sense if directionality—do we look up or down into the start of the day? For that, we are going to rely on trendlines. You should see an hourly downtrend being broken out of:
What’s important is that the hourly trend retested and passed, making this breakout valid:
Given the breakout validation, we’d do well to notice this is flagging on the hourly, and that SPY could see a nice rip:
The levels are our true guide though. Above the current flagging set on the hourly and we get a reclaim up to the unbacktested weekly (white) levels above. A loss of level and we’re back down.
