SPX has closed the week very close to support. I took long positions in my swing trading. And I will flip short (again) if we reach the upper box or close to the red dynamic resistance.
With double bottom and double top , it was enough to determine that we were ranging. Unless we are proven wrong, this is the right strategy for swing trading from a Risk/Reward perspective. And we have to be prepared to get stopped if we go out of the range's levels. That's how we protect our capital.
Now we even have a triple top and triple bottom! This could be in a giant consolidating range.
How am I trading this?
If the range ends, follow the new trend! So Buy above the big red resistance, and Sell below the support with stop above.
Happy trading, and never forget to protect your capital.
With double bottom and double top , it was enough to determine that we were ranging. Unless we are proven wrong, this is the right strategy for swing trading from a Risk/Reward perspective. And we have to be prepared to get stopped if we go out of the range's levels. That's how we protect our capital.
Now we even have a triple top and triple bottom! This could be in a giant consolidating range.
How am I trading this?
- Long from 2624.
- Target 2803 approximately, where the red dynamic resistance will meet the price if the market decides to buy it.
- SL 2599. And I will reinforce my long position if price goes below 2620 but the stop will remain 2599.
- 4h RSI looks good to reverse
- 1D RSI is creating higher highs
This trade has a Risk/Reward=1/7.3
If the range ends, follow the new trend! So Buy above the big red resistance, and Sell below the support with stop above.
Happy trading, and never forget to protect your capital.