Trading into Uptrend on mini S&P 500 Using Retracements

Trading into Uptrend on mini S&P 500 Using Retracements

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Trading into the uptrend on the mini S&P 500 using retracements off the lower timeframes ensures traders do not buy the high of the day.

Trading into an Uptrend on mini S&P 500 Using Retracements

As I mentioned in my post yesterday, there was a potential retracement that may occur off the daily chart.  However, the key would be if the ATR on the 45 and 180 chart held (red crosses).  As you can see below the ATR on the 45 minute did not hold.  Instead, it flipped to blue and then price retested the new ATR before continuing on to make new highs.

Trading into Uptrend on mini S&P 500 Using Retracements

 

While there were two potential entries into the uptrend using the 45 minute chart, traders can also go down in time to a 3 and 12 minute for additional entries.  For example, on the charts below, even though price never retraced back to the ATR on the 12 minute, there have been four entries into the uptrend this morning (marked by blue arrows).  The hidden divergence on these entries are market with red lines on the Stochastics.

 

Trading into Uptrend on mini S&P 500 Using Retracements

 

On the 12 minute chart, currently both the ADX and the Stochastics is overbought.  This indicates that either prior to the market opening or at the market opening, a retracement is likely to occur.  With a bias to the upside, the trader would look for a potential entry to the long side, once price retraces back to either the 3 minute ATR (at 2472) or 12 minute ATR (at 2470.6).  This allows the trader to go into the higher time-frame trend without buying the high of the day.

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