SP500 Long - Short term trade
On the 4H timeframe I see the downmove temporarily at least, diminishes in strength.
After the extreme wick, there was a rejection to be seen at 3350 support level. Then it ticked up 100 (!) points, and then it started to decline again. But these candles show downwicks, and there is MACD-H that is mildly diverging with the small rise in prices. The uptrend has been broken, so care should be taken here, we don't see a complete reversal on the 4H TF.
On the 45 minute timeframe, there is clearly a good MACD-H divergence, althought not with EFI. Stochastic RSI seems to cross, and is turning up.
In light of the higher TF, that is diverging a bit, and the Stochastic RSI is maximum oversold, I think we will turn up on the 4H TF, and touch the value zone, a good target could be the local reistance of 3450.
The Stoploss has been place 1.5 ATR levels away, and a bit below that latest downwick.
Entry: 3402
Target: 3449,50
SL: 3374,75
R/R ratio: 1:2
After the extreme wick, there was a rejection to be seen at 3350 support level. Then it ticked up 100 (!) points, and then it started to decline again. But these candles show downwicks, and there is MACD-H that is mildly diverging with the small rise in prices. The uptrend has been broken, so care should be taken here, we don't see a complete reversal on the 4H TF.
On the 45 minute timeframe, there is clearly a good MACD-H divergence, althought not with EFI. Stochastic RSI seems to cross, and is turning up.
In light of the higher TF, that is diverging a bit, and the Stochastic RSI is maximum oversold, I think we will turn up on the 4H TF, and touch the value zone, a good target could be the local reistance of 3450.
The Stoploss has been place 1.5 ATR levels away, and a bit below that latest downwick.
Entry: 3402
Target: 3449,50
SL: 3374,75
R/R ratio: 1:2
Trade closed manually:
Imagine missing the target with only 2 points. Sigh. Trading can be rough. Closed the trade manually at 3420, still 2/5th of the projected profit.