S&P 500 - 4hr Timeframe - Update on Short Opportunity
Following our previous analysis on the S&P500 0.33% index of listed shares (www.tradingview.com/...e-bigger-correction/), we are still expecting the downward move with an excellent profit potential and a great risk to reward ratio.
The price action in the last sessions has put in play a new attempt of breaking the previous top, showing us a well known pattern in play that we are showing in this update.
To us, this is a confirmation that the downside, on the bigger daily picture, is about to come, to complete the (b) wave of the minor correction within the daily correction. The invalidation of said flat type pattern, would only be confirmed once and if the price passes the weekly top at 2878: in that case, we would be looking at a B wave of the bigger structure which, however, at the moment does not appear likely to be.
From this moment on therefore, we will be looking for sell setups, on this index: watch out for ending diagonal formations and other price action patterns for an entry point on their break. For a more conservative approach, wait for a first impulse to the downside, wait for a small correction of said impulse on the 60min timeframe, and sell the break of said correction with a stop loss above it.
If you feel that our analyses and views may be a useful complement to your trading strategies and in order to be notified in real time with our updates on the lower timeframes, please remember to click on the Follow button.
Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down).
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
Thank you for viewing.
The price action in the last sessions has put in play a new attempt of breaking the previous top, showing us a well known pattern in play that we are showing in this update.
To us, this is a confirmation that the downside, on the bigger daily picture, is about to come, to complete the (b) wave of the minor correction within the daily correction. The invalidation of said flat type pattern, would only be confirmed once and if the price passes the weekly top at 2878: in that case, we would be looking at a B wave of the bigger structure which, however, at the moment does not appear likely to be.
From this moment on therefore, we will be looking for sell setups, on this index: watch out for ending diagonal formations and other price action patterns for an entry point on their break. For a more conservative approach, wait for a first impulse to the downside, wait for a small correction of said impulse on the 60min timeframe, and sell the break of said correction with a stop loss above it.
If you feel that our analyses and views may be a useful complement to your trading strategies and in order to be notified in real time with our updates on the lower timeframes, please remember to click on the Follow button.
Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down).
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
Thank you for viewing.