Using the current chart of the S&P 500 ETF (N:SPY) as an example, there are different signals for different horizons. On the short-term timescale, the trader will see a move over the down-trending resistance on Monday, continuing in the pre-market action Tuesday. This is a market to own on this time frame.
But an intermediate-term trader will see something completely different. The SPY held at the prior low but continues in a range between 181 and 195. She might trade the range or step back and determine that the no-man's land between needs to break before an opportunity exists.
A trader on a slightly longer time frame sees a lower-low made against a lower-high in October. This defines a downtrend. The trader may remain short or out of the market until a new low or a higher-high is made. So which trader are you?
Which stock should you buy in your very next trade?
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