SPX500. Big trends start at lower timeframes
While many people get bearish on the SPX500 and packing the bags for a minimum 10% ride down, I believe bullish market has not gone yet and we still have one last push up.
Normally, on an Elliott Waves analysis one should not work only on bigger timeframes but continousy check lower timeframes to determine a possible turnaround. Once we see a 5-Waves impulse on a lower timeframes, it is a good sign of a possible price swing.
This is a 15 minutes TF for SPX500, "live" if you can say so. You can see a completed 1-2-3-4-5 structure and an ABC-correction to it which has already finished or it is close to it. Therefore, The idea is to long the market with a very close Stop-Loss. If price goes below the base of Wave 1 (which is at 2420.2), then the whole structure is invalid. Risk/Reward is very good and options to put a trade to breakeven in case it does not go in our direction are high as well.
I also included a Pitchfork: when the price is inside the Pitchfork, everything goes well. But when a wave structure is completed and price leaves a Pitchfork, get prepared for something nasty. Notice how the fork was backtested when the price left the main frame of the Fork.
Thanks for checking and Q&As are welcome as always!
Normally, on an Elliott Waves analysis one should not work only on bigger timeframes but continousy check lower timeframes to determine a possible turnaround. Once we see a 5-Waves impulse on a lower timeframes, it is a good sign of a possible price swing.
This is a 15 minutes TF for SPX500, "live" if you can say so. You can see a completed 1-2-3-4-5 structure and an ABC-correction to it which has already finished or it is close to it. Therefore, The idea is to long the market with a very close Stop-Loss. If price goes below the base of Wave 1 (which is at 2420.2), then the whole structure is invalid. Risk/Reward is very good and options to put a trade to breakeven in case it does not go in our direction are high as well.
I also included a Pitchfork: when the price is inside the Pitchfork, everything goes well. But when a wave structure is completed and price leaves a Pitchfork, get prepared for something nasty. Notice how the fork was backtested when the price left the main frame of the Fork.
Thanks for checking and Q&As are welcome as always!
Please, follow your strategy! Always!
If there is no strategy that has proven itself successful, please do not trade with real money!
If there is no strategy that has proven itself successful, please do not trade with real money!
Same thing on 5 min TF. Notice a common wave C is an impulse and therefore should have a 1-2-3-4-5 structure. To determine possible targets of a correction, one should always try to make a breakdown of a wave C using the impulse logic. Also, normally (and it CAN be different) Wave C is equal to Wave A.