SPY is currently at major resistance within a an ascending triangle pattern.
This means market participants have been buying the dip and selling at the same 3222 resistance. The dip has become more shallow as we have experienced higher lows. More often than not, this build up pressure results in a breakout, although many believe ascending triangles to be a neutral pattern. Personally, I feel neutral about this setup, but regardless this is a good place to short with a tight stop. The green line is also still a good place to buy the dip. If we happen to break through the top of the ascending triangle, wait for a retest of the top of the triangle for a good risk:reward long entry.
Sellers continue to sell around 3222 and buyers keep buying the dip. We'll find out soon who is stronger.
This means market participants have been buying the dip and selling at the same 3222 resistance. The dip has become more shallow as we have experienced higher lows. More often than not, this build up pressure results in a breakout, although many believe ascending triangles to be a neutral pattern. Personally, I feel neutral about this setup, but regardless this is a good place to short with a tight stop. The green line is also still a good place to buy the dip. If we happen to break through the top of the ascending triangle, wait for a retest of the top of the triangle for a good risk:reward long entry.
Sellers continue to sell around 3222 and buyers keep buying the dip. We'll find out soon who is stronger.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.