Many elements are required for being successful traders like risk management, strategy and psychological aspect but nobody talking about thinking in alternates.
Absolutely understand this situation, because almost everybody is in the position that thinking in alternates is a weakness and indecision. It is believed that whoever has alternates is not able to know what will happen, not able to make a decision.
In my trading world to be able to think in alternates is one of the strongest and the most openminded things. If I have A, B or C alternative I always focus on the common points, same direction, key and critical levels.
Let's see how it works on the chart in realtime:
Here is the S&P500 Elliott wave analysis.
The left chart is a bearish view. Before the coronavirus, the five-wave structure had been built up. The virus shock was wave A, the first wave of a three waves correction. Now the corrective wave B has been ongoing and almost reached the 0.786 Fibonacci level. Waiting for the break out of the current flow and the wave C should reach the March low in an impulsive manner.
The right chart is the bullish forecast. The all-time high was the wave b of wave 4 in a Flat correction. The COVID low is the wave 4 bottom. Now the rising wave 1 of 5 is ongoing. The further advance will come, but before that the wave 2 should come soon. After the break out of the current flow, a corrective decline should come to achieve 2700 horizontal support zone and lower side of a rising channel.
The bearish and bullish common point is a decline movement should come sooner or later. So the critical level of the current flow would break(lower time frame can show it) than the falling will be the same direction in both views. The difference is the manner which is in the bearish situation should be impulsive while in the bullish forecast it should be corrective. The target of wave 2 around 2700 in the bullish forecast while the target could be at 1700 in the bearish.
Facing each other views have the same directions in the next movement is my favourite trading situation.
Everything will be decided at the 2700 level, and let the future answer this question. Patiently waiting for the reversal pattern and the breaking. Around 2700 I will readjust the analysis with respect of the manner.
Absolutely understand this situation, because almost everybody is in the position that thinking in alternates is a weakness and indecision. It is believed that whoever has alternates is not able to know what will happen, not able to make a decision.
In my trading world to be able to think in alternates is one of the strongest and the most openminded things. If I have A, B or C alternative I always focus on the common points, same direction, key and critical levels.
Let's see how it works on the chart in realtime:
Here is the S&P500 Elliott wave analysis.
The left chart is a bearish view. Before the coronavirus, the five-wave structure had been built up. The virus shock was wave A, the first wave of a three waves correction. Now the corrective wave B has been ongoing and almost reached the 0.786 Fibonacci level. Waiting for the break out of the current flow and the wave C should reach the March low in an impulsive manner.
The right chart is the bullish forecast. The all-time high was the wave b of wave 4 in a Flat correction. The COVID low is the wave 4 bottom. Now the rising wave 1 of 5 is ongoing. The further advance will come, but before that the wave 2 should come soon. After the break out of the current flow, a corrective decline should come to achieve 2700 horizontal support zone and lower side of a rising channel.
The bearish and bullish common point is a decline movement should come sooner or later. So the critical level of the current flow would break(lower time frame can show it) than the falling will be the same direction in both views. The difference is the manner which is in the bearish situation should be impulsive while in the bullish forecast it should be corrective. The target of wave 2 around 2700 in the bullish forecast while the target could be at 1700 in the bearish.
Facing each other views have the same directions in the next movement is my favourite trading situation.
Everything will be decided at the 2700 level, and let the future answer this question. Patiently waiting for the reversal pattern and the breaking. Around 2700 I will readjust the analysis with respect of the manner.