Market Minds

What a day!  Today officially ended as a “Rounded Reversal” or Failed Trend Day Down, but I wanted to take a moment to highlight the numerous TICK and Momentum divergences and also show how overlaying basic Elliott Waves can help you in your intraday trading strategies.  This is one chart from today’s “ Idealzied Trades” Daily Summary/Trading Reports . (You’ll need to click for full detail) Without going into much detail (I describe the chart along with more simple/basic charts) in the report, but the main idea is to drive home the point how both Momentum and TICK Divergences help set-up good trade locations with tight stops and a greater than normal expectancy of a winning scalp trade. It’s also showing how the 1-min structure can assist you in making trading decisions off the 5-min chart (or even 15-min chart) whether you trade ETFs or @ES or @YM futures (which I would recommend and do myself).  The reason I show the SPY chart is because it is far more watched and accessible than futures charts for most readers. You can even use the index structure to assist you in trading common stocks intraday - for example, when the SPY (S&P 500) comes into an inflection point or is on a buy swing, you can use it as a confirmation for an entry into the stock(s) you are trading. That being said, notice how the Elliott Wave count - no, we’re not trying to be 100% precise, particularly intraday in real-time - confirms these momentum lows and divergences. As I’ve shown and traded many times, we often get a new momentum and new TICK low in the 3rd wave (which is often the starting point) and then we wait for the 4th wave to pullback into resistance (or support) - hopefully forming a reversal candle) before entering perhaps aggressively to play for the final 5th wave and then reversing to play the corrective move. I explain this further in a basic level on the Elliott Wave Educational Page .

Read more:
SPY Intraday Divergence and Elliott Summary July 8