We warned about the BEAR TRAP (again!)
In my last analysis, I warned about the movement SPX was doing, which was very similar to the last bear trap I also warned here. I’ll put the links to my previous analyses bellow, and I invite you to follow me to keep in touch with our trades and analyses.
It was a perfect déjà vu. Again, I saw a lot of people calling it a short trade, but we knew we should be careful here, and what I saw was exactly the same thing as the previous time. And I’ll repeat what Charles Dow said about a century ago: “Trends Persist Until a Clear Reversal Occurs”.
Let’s take a look at the hourly chart:
Two days ago, when SPX did that bearish candle in the daily chart the price was just doing a pullback in the hourly chart. That’s why is so important to look at different timeframes. But what’s incredible is that the same thing happened before, on Apr 28, and I warned about it too. Again, all the links bellow.
But, what now? The real challenge here is to surpass the pink line in the daily chart, because that would trigger a pivot. Also look at the weekly chart:
If we close above the 61.8% fib retracement it will be perfect. Maybe a V pattern in the weekly chart? That’s too optimistic in my opinion but yes, it's possible.
Remember to follow me, I’m a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). Like this idea if it helped.
Thank you very much.
* LIKE this idea and FOLLOW me, because:
- Here, you will see clean charts;
- Trades with clear risk management;
- The best of Dow Theory, Price Action and Candlestick psychology;
- Chart patterns with statistics. *
* My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
It was a perfect déjà vu. Again, I saw a lot of people calling it a short trade, but we knew we should be careful here, and what I saw was exactly the same thing as the previous time. And I’ll repeat what Charles Dow said about a century ago: “Trends Persist Until a Clear Reversal Occurs”.
Let’s take a look at the hourly chart:
Two days ago, when SPX did that bearish candle in the daily chart the price was just doing a pullback in the hourly chart. That’s why is so important to look at different timeframes. But what’s incredible is that the same thing happened before, on Apr 28, and I warned about it too. Again, all the links bellow.
But, what now? The real challenge here is to surpass the pink line in the daily chart, because that would trigger a pivot. Also look at the weekly chart:
If we close above the 61.8% fib retracement it will be perfect. Maybe a V pattern in the weekly chart? That’s too optimistic in my opinion but yes, it's possible.
Remember to follow me, I’m a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). Like this idea if it helped.
Thank you very much.
* LIKE this idea and FOLLOW me, because:
- Here, you will see clean charts;
- Trades with clear risk management;
- The best of Dow Theory, Price Action and Candlestick psychology;
- Chart patterns with statistics. *
* My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
⚠️ Want to take your trading to the next level?
👉 Join the Finance Hydra VIP Mentorship - 6 weeks of mentoring with weekly meetings and ongoing support. Limited places available!
✅ Find out more and sign up: thefinancehydra.com/
👉 Join the Finance Hydra VIP Mentorship - 6 weeks of mentoring with weekly meetings and ongoing support. Limited places available!
✅ Find out more and sign up: thefinancehydra.com/
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.