S&P 500 $SPY Trading Chart Update Monday Dec 19 $ES_F ($SPXL, $SPXS) Chart and Algorithm Observations
Good morning! My name is Freedom the $SPY Algo. Welcome to my new S&P trade report.
IMPORTANT NOTICES:
Short Term Pause: As I warned previous, the machines have stopped trading (for the mos part) as of noon Dec 14. The resistance I alerted on a number of occasions is where the machines stopped trading.
NEW: Market Inflection? We consider this a high probability point of market inflection. So we are going to take this opportunity (and being that is the end of the year and we plan to do this with each algorithm model each year at this time) to reset / apply all our indicators and establish new targets for the new year going forward. Between now and Jan 1 I will be introducing new traditional indicators daily to my reporting (which will allow our subscribers to see and be a part of the process) and by the time Jan 1 is upon us we will have sorted through all the primary indicators that affect $SPY trading, I will have given each a weight (in terms of how significant the indicator is to be considered within my algorithm) and we will then have algorithmic trading ranges and targets for all time frames (1 min, 3, 5, 15, 30, 1 hr, 4 hr, 1 day, 5 day, 1 month). We can then track my call hit rate % performance for 2017 also. This is the same process the other algorithms that have been developed before mine have undergone. The bottom – by Jan 1 the complete algorithmic modeling will be done for $SPY and our members will partake in / witness the process over the coming ten days or so.
How My Algorithm Works and Availability:
I am an algorithm in development. My math is based on traditional indicators (up to fifty at any given time each weighted on individual merit) such as simple math calculations relating to price and volume, Fibonacci, simple pivots, moving averages, Gann, Schiff and other mathematical factors. I do not yet have AI or Geo integration – only math. I am not a high frequency or bot type algorithm – I am to be used (represented on a chart) as a probability indicator to give our trader’s an edge when triggering entries and exits on trades with instruments that rely on the price of the S&P500 (more specifically $SPY). In early 2017 I will also provide algo indicators and charting for $ES_F.
Below you will find my simplified view of levels that can be used on a traditional chart to advance a traders’ edge (both intra-day and as a swing trader). This work, and your subsequent trading, should be considered as one decision at a time, “if this happens then this or this are my targets”… price – trigger – trade and so on.
My algorithmic charting is going to developer coding phase early 2017 for our trader’s dashboard program. Please review my algorithm development process and a recent post by my developer that explains more about “Why Our Algorithms are Different than Most”.
I Am In Very Early Stage Development
My algorithm is the fifth in the line of six that my developers are working with – which means I am in the very early stages. So you will find my charting below to be very simple (relative to say the first algo they developed EPIC the Oil algo). So if you find that my initial charting does not assist you with an edge in your trading please let the office know by emal [email protected] within 30 days at most of signing on so they can refund you. If you do chose that option, you can always check back early 2017 when my algorithm processes / indicators for your trading edge will be very extensive (mid Jan).
$SPY Trading Observations:
$SPY Hit the resistance alerted to members prior to Fed and has not recovered since. 522 AM Dec 19 $ES_F $SPXS $SPXL
https://twitter.com/CompoundTrading/status/808944362323263488
Keep it Simple Chart of the Day:
S&P 500 Keep it Simple Chart of Day. Buy sell 200 20 MA cross on 1 Hr. $SPY $ES_F $SPXS $SPXL – or you can trade on tighter MA indications per below:
Building the Probabilities for Buy Sell Signals in Algorithmic Model – We Start With Simple MA’s
With our algorithmic modeling our development philosophy has been to keep it simple. One way we do this is to start with the MA’s and how they might become predictable buy and sell triggers on various time-frames – once we have reviewed them all (which I won’t include all in these posts because there are many hundreds of variations and these posts would become books) we then calculate the win rate % for each win / loss for each time frame for each MA. Simple right? It actually is – the more difficult part is actually processing the information.
Once we have the MA data processed for all time frames we then have buy / sell triggers with probabilities attached to each for our buy / sell alerts. We can then move on to other indicators such a Fibonacci and many more (all of which become part of our probability set for algorithmic targets). So for the next few days we will review some of the more considerable MA’s a trader can look at.
For shorter time-frame trading, below are tighter trading considerations than the chart above:
$SPY Tighter trading buy 20 MA crosses 200 to upside – sell 20 MA crosses 50 downside on 1 Hour. 538 AM Dec 19 $ES_F $SPXS $SPXL
Trading tighter has the entries long when 20 MA crosses 200 MA to upside with a sell / short signal when price is under 20 MA and 20 MA crosses 50 MA to downside and then when 20 crosses 50 MA to upside again take the long. This has proven to be a predictable trade (analyzing the last 12 months) – as long as trade isn’t choppy to side.
$SPY Tighter trading buy 20 MA crosses 50 MA to upside on 5 Min. 6 AM Dec 19 $ES_F $SPXS $SPXL
Trading long when the 20 MA (light blue) crosses the 50 MA (purple) on a shorter time-frame (the 5 minute chart) can provide a moderately predictable intra-day sniping trigger for the long side but is not nearly as predictable as the set-ups above when you back test the win ratio and win range going back 2 years on the chart.
Fibonacci:
$SPY The 20 MA is turning up through 50 MA on the 5 Minute – Fibonacci levels to watch. 614 AM Dec 19 $ES_F $SPXS $SPXL
$SPY Close-Up. The 20 MA is turning up through 50 MA on the 5 Minute – Fibonacci levels to watch. 618 AM Dec 19 $ES_F $SPXS $SPXL
Caution here because $SPY is consolidating after a run-up – but the indicator is there tentatively nonetheless!
Alpha Algo Trading Lines:
Over next ten days we will establish these based on indicators above and market inflection end of year price action.
Alpha Algo Trading Targets:
Over next ten days we will establish these based on indicators above and market inflection end of year price action.
Intra Day Algo Trading Quadrants:
Over next ten days we will establish these based on indicators above and market inflection end of year price action.
Time / Price Cycle Change Forecast:
Over next ten days we will establish these based on indicators above and market inflection end of year price action.
Good luck with your trades and look forward to seeing you in the room!
Freedom the $SPY Algo
Article Topics: Freedom $SPY Algo, Fibonacci, Stocks, Wallstreet, Trading, Chatroom, Gold, Algorithms, $SPY, $ES_F, $SPXL, $SPXS