SPX - TRADING PLAN
Looking at the 4hr SPX500USD chart I have found a couple of price levels where price may reach for and target before hitting the 5000 mark.
We see price has been consolidating for some time now and making volatile moves both up and down. This has created and left liquidity pools which I believe should and could be reached for. The dashed trendlines showcase the areas where there is liquidity sitting and are also in places where I have identified an inefficiency.
Thus, I believe price could come down even more and target these before moving up strongly and quickly.
Another confirmation of another move and down here is the head and shoulders pattern formed by the market.
Although I anticipate a drop in the market, I will not be selling until I see a valid setup and will mainly be focused on securing the buy.
There are 3 potential trade ideas here. The first one has a more aggressive stop loss to maintain a good risk to reward while the 2nd one has the same entry but a more conservative stop loss.
The 3rd entry is very deep into the retracement and may not be filled hence the earlier entries.
I personally will be placing 1% risk on the first, 0.5% on the second and 1% on the third; giving us a maximum of 2.5% loss.
The black horizontal lines represent my take profit areas.
DISCLAIMER: I am not a financial advisor and nor is this financial advice. Only risk what you can afford to lose and this type of speculative trading can result in loss and/or profits.
We see price has been consolidating for some time now and making volatile moves both up and down. This has created and left liquidity pools which I believe should and could be reached for. The dashed trendlines showcase the areas where there is liquidity sitting and are also in places where I have identified an inefficiency.
Thus, I believe price could come down even more and target these before moving up strongly and quickly.
Another confirmation of another move and down here is the head and shoulders pattern formed by the market.
Although I anticipate a drop in the market, I will not be selling until I see a valid setup and will mainly be focused on securing the buy.
There are 3 potential trade ideas here. The first one has a more aggressive stop loss to maintain a good risk to reward while the 2nd one has the same entry but a more conservative stop loss.
The 3rd entry is very deep into the retracement and may not be filled hence the earlier entries.
I personally will be placing 1% risk on the first, 0.5% on the second and 1% on the third; giving us a maximum of 2.5% loss.
The black horizontal lines represent my take profit areas.
DISCLAIMER: I am not a financial advisor and nor is this financial advice. Only risk what you can afford to lose and this type of speculative trading can result in loss and/or profits.
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