If you have any familiarity with looking at trends across various time frames, you'll know that reversals in trend start with building blocks on lower time frames and develop into full-blown ones onlarger ones.
SPX500 has begun to break down on time frames 15 min. and below, with the 8 and 34 EMA's experiencing bearish crossovers on the 5 and 15 min. charts.
On the 30 min. and 1H time frames, the cross has yet to occur, but it looks like price is heading in that direction on weak Chinese data. I will consider looking to change potential scalping direction to the short side if we get that 8/34 EMA break on the 1H, followed by a break of resistance at about 2020.
I naturally don't want to go short just upon the 1H 8/34 crossover if price is merely going to go a few ticks and then bounce off resistance back into one of my thoughtfully placed stops.
In the meantime I'm flat due to the fact that the direction of the 5 min. EMA's is inconsistent with that indicated by the 1H ... .
SPX500 has begun to break down on time frames 15 min. and below, with the 8 and 34 EMA's experiencing bearish crossovers on the 5 and 15 min. charts.
On the 30 min. and 1H time frames, the cross has yet to occur, but it looks like price is heading in that direction on weak Chinese data. I will consider looking to change potential scalping direction to the short side if we get that 8/34 EMA break on the 1H, followed by a break of resistance at about 2020.
I naturally don't want to go short just upon the 1H 8/34 crossover if price is merely going to go a few ticks and then bounce off resistance back into one of my thoughtfully placed stops.
In the meantime I'm flat due to the fact that the direction of the 5 min. EMA's is inconsistent with that indicated by the 1H ... .
