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PRO_Indicators
Mar 9, 2019 10:58 AM

S&P500 / W1 : Overbought Signal and price confirmation... Ugly ! Short

S&P 500 index of US listed sharesFXCM

Description

TIP : when prices show an overbought signal with a lower high, the following wave generally reaches out to an oversold momentum and therefore most likely breaks trough the previous low.
The only way out of this pattern is to reach out to the previous high or ranging the local price area till momentum shows a squeeze pattern.

Hope this idea will inspire some of you !
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Kindly,
Phil
Comments
bearish1
It's a clearly worst timing to buy stocks.
so, we have two options.
1. do nothing
2. sell
PRO_Indicators
@bearish1, Couldn't say any better than that.
Goomonster
@bearish1, Or Short :)
ridethepig
@bearish1, The slowdown is real, recession is almost at the door.
thisisafish
How far do you think the Friday "brutal" ending up goes to? My shorts a pretty good still - but a reverse to week top would be a wee bit nasty.. I sold some more thinking that it would go down just before close :) Surprised that it did not with ALL the bad news (US + EU + "east" down 4% etc.) and the TA signs bear signs....
kurochig
@thisisafish, General downtrend does not eliminate short squeezes, so it's important to reinforce, but not to over-leverage so you won't have to put overall stoploss anywhere near.
ReallyMe
Interesting analysis, thanks
That's what I see hapenning on a bigger scale:
gvoommen
I am not sure what you mean from the tip. Can you provide an example?

moo111
@gvoommen,
look at the momentum indcator bottom right ? I can see a local top with lower high.
PRO_Indicators
@moo111, @gvoommen, exactly when you're overbuying without even making a new high on prices, it means you burnt all the gas without reaching the finish line ! To me it just fits the pattern I think it is, dead cat bounce to fall lower. Future will tell, it's just a pattern, not a prediction !
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