One of the best lessons to be learned from High Probability Trade Strategies is how to identify if a market is at a high probability juncture. The S&P has reached such a juncture.
The Feb. 18 high to March 16 low can clearly be counted as either an ABC or 1-2-3. The three day rally to the March 21 high reached the 61.8% retracement and which is very near the low of the potential Wave 2 or B which is typically the maximum a Wave-4 should reach. Daily DTosc (8,5,3,3,) momentum is OB.
What is an important pattern signal taught in the book that would signal the March 17 low is a W.C and the S&P should eventually continue the bull trend to above the Feb. 18 high?
The daily closing low of the potential W.1 or A low is March 1 at 1296. A daily close above 1296 is an “overlap” as described in the book and signals March 17 should be a corrective low. With the S&P near critical price resistance and daily momentum OB, any daily reversal signal or decline below a minor swing low is a sell-setup with minimum capital exposure.
Which ever direction the S&P takes from here, the strategies taught in High Probability Trading Strategies will allow the trader to take advantage.