How to use the Higher Time Frame in the S&P 500 to Get a Read on Price Action
04-30-2025
Traders,
I like to use the Higher Time Frame (HTF) to get a read on price action.
I consider the Monthly, Weekly and Daily charts a HTF.
So let’s look at the S&P 500 together starting with the monthly chart.
You can see a large wick forming.
This wick bounced off a key area of interest.
Large wicks typically mean rejection.
So this tells us price action could potentially start to go up.
This usually never happens in a linear fashion, but bullish price action could start to interest us now.
Now, let’s look at the weekly time frame.
The black candle is the weekly candle from 2 weeks ago. (black arrow)
However, I need you to pay attention to the next weekly candle from last week. (red arrow)
You can see that it engulfs the previous candle.
It took out the bottom and closed above the top.
Bullish engulfing candles usually mean that bullish price action is likely to follow.
Now, I bring your attention to this week’s candle to the right of the red arrow.
The price is hanging out around the top portion.
There was a slight pull back but it’s been bullish mainly.
Now, we’ll look at the daily chart.
The black arrow is pointing to the Monday daily candle.
You can see a tiny body with 2 wicks above and below the body.
This is a classic sign of a consolidating price action for the day.
So Monday didn’t really tip us off on where price is likely headed this week.
Tuesday’s candle was bullish.
As I write this on Wednesday morning before the news, the price action is quite bearish for the day.
Economic news events are used as catalysts for price to move.
So this could potentially be a situation where the market maker is selling to buy it back.
This makes sense because our bias on the monthly and weekly charts is bullish.
This does not mean we won't short the market intraday.
Just that our general outlook is bullish.
This is just a small insight to how I look at the markets on the HTF.
However, there are LOTS of other factors that affect the market and price action that takes place when I think of areas in the market where price can trade.
And when I come up with good areas of interest, I send this out to my subscribers in Game Plan.
I call these areas of interest call and put zones.
And we trade these areas with a high degree of success.
My win rate trading is 94% with a 67% ROI on average.
Other traders love this and are seeing success as well.
If you would like to have these daily trade alerts sent to you before 10AM when I do see a clear trade setup, then join the Game Plan today.
Olivia Voz