Quant_

S&P 500 Ascending Channel - Short Setup

Short
OANDA:SPX500USD   S&P 500 Index
SPX500 Short Trade

Entry: $3,866.6
TP & RR: $3,840.5 (1.13)
Stop Loss: $3,889.7

REASONS FOR THE TRADE

Straight off the bat, you notice two things here - ascending channel and opening a position against the trend with what I consider a bad Risk:Reward Ratio of just over 1. However, I believe that price can form a double top with bearish divergence, retrace back to the lower trendline and then continue up. Of course, we will be looking to open a long order somewhere at the lower trendline.

Stop Loss is set pretty high in case there's a fakeout. However, we will close the position if there's a convincing close above the recent high.
Order cancelled: Change of plan, the price reached the lower trendline before we got filled, so opening a long trade now.

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