Where to get in on SPY? 302-305 longs?
Investors and traders alike are looking at this thing and getting frustrated if they haven't been able to catch any of this long and no one wants to buy the top with the hopes that the upside will continue. So what is a good entry location for continued longs on the SPY?
A preferred retrace is the convergence of multiple things.
1. A retrace that is no more than 5% because that would open downside floodgates, we're looking for something around the 3.50% retrace area.
2. Respects the market structure, the bull trend will continue if the retrace creates a higher low, which would be at the wedge break ($305)
3. It respects the support/resistance level we have mapped out based on the volume profile edge, which happens to be a previous all-time high ($302)
4. Volume on the move lower into the support is weak. While volume on the pop above gets strong.
5. The 50% retrace from the start of the move higher to the current high is right at around $303, so the buy zone is calculated to be around $302-305.
This will only hold true if your personal risk management and analysis conditions are met.
Disclaimer: This post is strictly for educational purposes, this does not constitute as trading advice or investment advice, TRADEPRO Academy is not responsible for anyone's market activity.
A preferred retrace is the convergence of multiple things.
1. A retrace that is no more than 5% because that would open downside floodgates, we're looking for something around the 3.50% retrace area.
2. Respects the market structure, the bull trend will continue if the retrace creates a higher low, which would be at the wedge break ($305)
3. It respects the support/resistance level we have mapped out based on the volume profile edge, which happens to be a previous all-time high ($302)
4. Volume on the move lower into the support is weak. While volume on the pop above gets strong.
5. The 50% retrace from the start of the move higher to the current high is right at around $303, so the buy zone is calculated to be around $302-305.
This will only hold true if your personal risk management and analysis conditions are met.
Disclaimer: This post is strictly for educational purposes, this does not constitute as trading advice or investment advice, TRADEPRO Academy is not responsible for anyone's market activity.
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