The part of this chart that jumps out most to me is the two blue underlying arrows for our recent 2 days of trading. This is an appealing idea for whoever has a bullish bias, but little did some traders realize that on the way down, all the green arrows were like traps, getting people to add to a problem, that is to think you've called the precise low; but I feel with my experience false bottoms are more subtle.
One, I changed their color to entertain the idea that there could be a series of higher lows coming, and that being the next two "mini-bottoms" could buck a new uptrend on this time frame.
On the other hand, we are not sure of any follow through coming in from Friday's awesome sell-off. Normally I can understand that a Fed announcement from Powell and a negative reaction on the day to jobs numbers would lead to some type of continuation the next day and week, especially for such heavy news items.
But as always, the future is not our to see, and I kept on the ????
The most powerful part of this chart is the 50 simple moving average shaded in yellow. It is a beautiful marker of trend and as of the past month price has acted very well at following its downward pointing slope. It was frustrating in 2017 to have such a gangbuster rally without much reversion to mean, and from my point of view it was harder to gauge when the pullback would happen. We can always later on experiment with different types of moving averages like exponential and simple and see which ones on the daily revert to mean more frequently.
This should be an exciting segway into the mid-April to May trading environment!
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