Bullish Day for US Index Markets

US Index markets strengthened throughout the day today and had an especially strong close to the session. US Stocks have shown strength all week with still one trading day left which may lead to further gains.  The charts below are the DOW and the S&P 500 Daily Charts.  As you can see today's move was a big one and on days like these there are usually opportunities to trade if you have a strategy that you can apply across all timeframes. 

With the strategies we teach here at Trade with Precision we are looking for strong trends across multiple timeframes. As you can see on the above daily charts, we actually aren't in conformed uptrend's. This signals to us that we need to go down to much lower timeframes to find strong trends across multiple timeframes.

If we drill down to the 15 minute chart which is shown below, the trend is better however we still don't see nice optimal chart structure with price pulling back into the moving averages and then moving away which would be what's providing us with trading opportunities. So how do we find trades then? Lets drill down to even lower timeframes. 

We have come right down to the 200 tick chart. A tick chart differs to the usual minute chart as with a tick chart a new candle is printed every time a number of transactions takes place, in this case 200. This chart would be similar to say a 1 minute chart for your reference. Look at the lovely price action on this chart. Price is trending smoothly, moving up and then pulling back into the moving averages and then continuing up again. The moving averages are fanned out in the correct order and we have convergence on the indicators as when price is making higher highs, so too is the MACD. 

One of our trading strategies (the Trend Flow strategy) takes advantage of when price pulls back into the moving averages and forms a bullish candle. We have outlined the potential trading opportunities using the small blue arrows. As you can see there was a number of chances to join the strong move which we saw in the US equity markets today.

To locate opportunities like this you need experience, knowledge and the right strategys which can allows to take trades across multiple timeframes. Trading strategies that work across multiple timeframes will open you up to plently of great trading opportunities, even in markets which may not be providing those opportunities on the higher timeframes as was the case on the DOW and the S&P 500 charts in today's trading session. Hopefully this article has opened your minds up to start looking below the surface as quite often there will be some great trading opportunities right under your nose.  

Happy Trading!

Regards,
The TWP Team