As far as mapping the

    Posted by steve on 15th of May 2018 at 12:53 pm

    As far as mapping the SPX , there remain a few valid options which I will review tonight.  Honestly, it's more important to trade what's in front of you by taking it one day at a time (as I've been preaching lately).  

    Focus on the most objective setups (for trades) and remain prudent with position size. 

    Focus on the most objective

    Posted by rojoch on 15th of May 2018 at 02:07 pm

    Focus on the most objective setups (for trades)

    To clarify, what would be your top 3 objective setups?  
    - Low and High of Doji with divergence?
    - Low and High of Hammer with divergence?
    - Something else?
    Thx.

    Tight patterns - coils, falling

    Posted by steve on 15th of May 2018 at 02:24 pm

    Tight patterns - coils, falling wedges, or flags

    Thx.  You mostly using the

    Posted by rojoch on 15th of May 2018 at 03:50 pm

    Thx.  You mostly using the 5m chart since you're intra-day?

    rojoch - yes doji candlesticks

    Posted by matt on 15th of May 2018 at 04:33 pm

    rojoch - yes doji candlesticks are not completed patterns, however yes under some circumstances you can use them as triggers for reversion to mean setups. For those patterns price needs to be very extended for shorts and longs, and you also want to see some divergence on a small time frame. On a daily chart you want to see typically some divergence on a 60 min time frame. The doji on the daily needs to have large separation from the 9 EMA.  Yesterday SPX closed with a doji as did most indexes and sectors. The doji was very far above it's 5 and 9 EMA's and also there was negative divergence on the 60 min frame via the MACD.  The problem today was that the cash market gapped down, thus triggers below dojis on SPY or ETF's like SDS or SOXS gapped.  ES trades overnight, yesterday's doji low on ES was 2724.25, so one could have placed a sell stop order 1 tick below the doji at 2724.  I did this myself but wasn't filled because of a dumb error on my point not clicking the fill in after hrs option in Interactive Brokers.  But otherwise a doji is not a true pattern, it's a potential pattern.

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