For today’s chart we will look at the S&P 500. I noticed that the S&P 500 is in a fifteen minute springboard buy setup as I was scanning the markets earlier today. Usually the posts I do are for longer time frames such as the daily chart but today I want to show you a trade in the 15 minute chart. If you are an e-mini trader then this post is definitely for you.
SP 500 fifteen minute long 1The setup we will be looking at today is the Springboard Long Setup. The theory behind this setup is every move looks to complete at the 127.2% Fibonacci extension setup. So that was the cornerstone to this trade setup.
The teal circles are the pivot points being used. You can see how price retraced up to the 38% Fib retracement level where I highlighted it with the green box. Next price came and broke the pivot low that is highlighted with the yellow box. So 2 of the 3 criteria’s for the trade setup have been met.
Now if price continues to go down and hit the 127.2% Fibonacci extension level then the move is complete and my Springboard trade setup is not valid. But as you can see that did not happen. What happened is price went back up and hit the 23.6% Fibonacci retracement level that is highlighted from the purple box. Once all three of those markers happen then the Springboard trade setup is initialized.
The original exit is the red line which is the 50% Fibonacci retracement level. But since the price retraced back to the 0% level (the blue line) the exit moves to the 38% retracement. That is the top of the blue box around 2891.
If price goes down and hits the 127.2% Fibonacci extension level before hitting the 38% level then you will move the exit to the 23.6% retracement.
I have drawn the pink line to help highlight the 23.6% level. The bottom of the yellow box is the entry and the 127.2% level. The top is the exit. But you only get in there and move the exit if that is hit first. If the 38% retracement level is hit first then do not get in at this level. The move is over and time to look for a new setup.
Conclusion for The S&P 500 Is In a Fifteen Minute Springboard Buy Setup
This is a shorter term trade than I usually post but these are fun to do. I really like this trade setup because it goes along with the 127% Fibonacci extension theory. I think I have it smoothed out with the Fibonacci levels for the entries and exits after a bunch of testing.
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