What I expect on S&P500 based on 5 past scenarios.
Hello everyone, the S&P500 index has broken the main trendline of the descending movement, which may be good news for the bullish team. So here I will show you the situation I'm expecting before developing setups.
As you already know, I only trade if I can prove in some way that the pattern I'm interested in has already happened in the past and, most importantly, that it's profitable. I have looked a the last 5 most relevant bearish movements starting in 2019, and I observe a sequence that I like to develop setups.
The sequence goes like this:
a) Once we have clarity regarding the bearish movement, we draw the most external descending trendline.
b) From there, we wait for the breakout (the situation we are currently in)
c) Now that the price has broken the structure, we will wait for 1 daily candlestick, at least that is lower than the previous day's candlestick.
d) IF that happens, we will go to the 1H chart to look at that correction and develop the setup.
Before continuing here are all the 5 scenarios:
Of course, when we see patterns on the market, those are not "extremely evident situations." Instead, those patterns tend to be subtle anomalies that you will be able to take advantage of if you spend enough time analyzing the charts.
Finally, I will put a template of the final setup I will be interested in executing.
The instrument I will be using to trade is S&P500 Futures under the ticker "ES". Depending on what the price does, this correction can happen on a higher level, or can not happen at all. REMEMBER: Waiting is your edge.
Thanks for reading!
As you already know, I only trade if I can prove in some way that the pattern I'm interested in has already happened in the past and, most importantly, that it's profitable. I have looked a the last 5 most relevant bearish movements starting in 2019, and I observe a sequence that I like to develop setups.
The sequence goes like this:
a) Once we have clarity regarding the bearish movement, we draw the most external descending trendline.
b) From there, we wait for the breakout (the situation we are currently in)
c) Now that the price has broken the structure, we will wait for 1 daily candlestick, at least that is lower than the previous day's candlestick.
d) IF that happens, we will go to the 1H chart to look at that correction and develop the setup.
Before continuing here are all the 5 scenarios:
Of course, when we see patterns on the market, those are not "extremely evident situations." Instead, those patterns tend to be subtle anomalies that you will be able to take advantage of if you spend enough time analyzing the charts.
Finally, I will put a template of the final setup I will be interested in executing.
The instrument I will be using to trade is S&P500 Futures under the ticker "ES". Depending on what the price does, this correction can happen on a higher level, or can not happen at all. REMEMBER: Waiting is your edge.
Thanks for reading!