Comparing Creeper Uptrends Intraday Jan 24
Tue, Jan 24, 1:41 PM ET, by Corey Rosenbloom
Nobody wants to be a “Creeper” but as traders we certainty do enjoy “creeper” intraday uptrends like these.
Let’s chart today’s price action with the most recent similar “creeper” intraday uptrend and draw some parallels as to what’s happening and what we can do about it.
First, take a look at today’s morning update on the Emini Trading Range and plan.
Put today’s “rally up from 2,250 toward 2,270″ in the same context as that of January 12th.
Before we discuss the intraday chart, know that 2,250 is a support (and reversal) price and 2,270 is an upper resistance target.
In that sense, this “Creeper” Uptrend occurred within that Higher Timeframe Context (HTF).
In fact, let’s compare today’s action (January 24th) with that of January 12th:
Let’s draw parallels and study the lessons.
BEFORE the Creeper Trend developed, both “Creeper Trend” Days…
1. took place at a HTF Reversal Point (target)
2. had POSITIVE MOMENTUM Divergences AT the known HTF reversal price (roughly 2,250)
3. initially surged higher with a KICK-OFF (new momentum and TICK high when price isn’t making a new high)
From that, we see now the characteristics of a Creeper Trend Day. They….
1. “Ride” or repeatedly scrape against the upper Bollinger Band
2. Bounce up off the rising 20 EMA (5-min)
3. Exhibit a 45 degree angle stable rise
The trading strategy – while the trend “creeps” higher – is to buy mini-pullbacks along the pathway higher.
It would be a mistake to short-sell or fade/fight these type of environments when they occur.
Price can “creep” higher, longer than you can anticipate – so don’t fight the money flow along the way.
Continue studying these two – and other – examples for additional insights and applicable trading strategies.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
SDI Glossary: "price" Definition
SDI Glossary: "Finance" Definition
SDI Glossary: "Stock" Definition
SDI Glossary: "TICK" Definition
SDI Glossary: "Trend" Definition
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