If you don't give away any secrets, what triggered the buy on Thurs?
Did you average down?
I averaged up. I won't say I never average down, because sometimes I do stupid things. My plan only calls for me to add if price is already showing me a at least a small
profit.
On Thursday I bought late in the day, soon after 3:30PM. SPY was trading below the low of Wednesday and twice tried to go lower than 365 around 2:30 or so. Then it rallied above Wednesday's low, and it fell back again trying to go lower than 365. Again, it couldn't keep it below 365, so I bought my first pilot buy there. I added around 9:45AM on Friday. If you were watching at that time, you would have seen that big burst off the lows by the ES in the Globex. Then, right before 9:45, a flurry of buying came in and I added then. I finished the adds by buying some more after pulled back from the morning highs, probably right around 11 AM. Then the final add was when price broke Thursday's high.
I don't keep secrets. I watch a weekly and daily when looking for swing direction. When I think it is time to stalk an entry, and I don't have an obvious place, such as a buy stop above a high, then I'll use the 30 minute and watch the price action. I look for bursts of activity, especially when price does the opposite of what it looks to be trying to do.
On the daily, I was looking at Tuesday, Wednesday, and Thursday as a small bull flag. That is why Thursday afternoon I started paying closer attention as SPY was hanging out at Wednesday's low but not making any real effort to sell off. I'm not really a chartist but I do find them to be very useful tools. Maybe I am something of a chartist. What I really like to act on are those bursts of strong buying to get long, or bursts of strong selling to get short. I will use charts too though, and sometimes I take a position before there is an obvious burst.
The moving averages are the 21 ema, and the 50 and 200 day simples.
