SP500USD ( $SPX 1D) I rather buy the dip now than FOMO later
No need to lookout for the smart money, I they are all gone.
All that is left are the dumb and greedy people.
That is the common assumption. Everybody wonder “what drive the market ?”
Some says it's the news, some says Supply and Demand. I think it’s technical.
Today was a solid -3% red day. Scary panic sell day or buy the dip day ? let’s chart this out.
One thing that caught my attention right ohf the bat is that the 20-weekly EMA did not break signaling a broader strength in the trend.
On the daily timeframe the RSI is making lower low while the price of the asset makes higher low.
This oddity can be described as a hidden bullish divergence.
If the price does not make lower swing low the SP500 remain bullish to me.
Now regarding what pattern can be drawn, I will go for a broadening wedge: multiples new highs and lows on the same support line.
That support line really is the “buy the dip or sell everything line”
A broadening wedge can be a continuation pattern or a reversal pattern depending on the breakout from the pattern
I drew 2 line :
-3300 is the new resistance line (previously support but break on a retest.
-3397 is the breakout line out of the wedge. A daily close above it would be most definitely bullish medium term.
As time goes by, I will keep you updated on the evolution of the coin, so make sure to follow me on Tradingview
Disclaimer: This is not financial advice as I’m not a financial adviser.
This is just my knowledge on what can be said from the chart.
Due to the volatile nature of the cryptocurrencies market, it can change on a day to day basis.
Everyone is wise to manage their risk properly when considering any trading decision or activities.
PS: I cannot emphasize enough the risk associated with the activity of trading ETF due to the imaginary nature of all paper contracts, the reason why I prefer mainly trading cryptocurrencies instead of more “traditional” assets. On the other end without total systemic collapse it can quickly become a good trade opportunity .
All that is left are the dumb and greedy people.
That is the common assumption. Everybody wonder “what drive the market ?”
Some says it's the news, some says Supply and Demand. I think it’s technical.
Today was a solid -3% red day. Scary panic sell day or buy the dip day ? let’s chart this out.
One thing that caught my attention right ohf the bat is that the 20-weekly EMA did not break signaling a broader strength in the trend.
This oddity can be described as a hidden bullish divergence.
If the price does not make lower swing low the SP500 remain bullish to me.
Now regarding what pattern can be drawn, I will go for a broadening wedge: multiples new highs and lows on the same support line.
That support line really is the “buy the dip or sell everything line”
I drew 2 line :
-3300 is the new resistance line (previously support but break on a retest.
-3397 is the breakout line out of the wedge. A daily close above it would be most definitely bullish medium term.
As time goes by, I will keep you updated on the evolution of the coin, so make sure to follow me on Tradingview
Disclaimer: This is not financial advice as I’m not a financial adviser.
This is just my knowledge on what can be said from the chart.
Due to the volatile nature of the cryptocurrencies market, it can change on a day to day basis.
Everyone is wise to manage their risk properly when considering any trading decision or activities.
PS: I cannot emphasize enough the risk associated with the activity of trading ETF due to the imaginary nature of all paper contracts, the reason why I prefer mainly trading cryptocurrencies instead of more “traditional” assets. On the other end without total systemic collapse it can quickly become a good trade opportunity .
Trade closed: stop reached:
today the SPX closed below the support line at 3226.
it is a bearish breakout of the broadening wedge. This mean than the asset is now in a downtrend until another pattern comes turning the trend again or if the price close back above 3226 again.
Even though the momentum is now to the downside I would not sell blindly. the safest bet is to wait a retest of the support turn resistance (3226) and the try a short entry.
the target of the pattern is 3070 minimum. It is true that the drop was quick as it often is with corrective waves.
This idea is closed but I will make a new one (short this time) if a good opportunity present itself.
today the SPX closed below the support line at 3226.
it is a bearish breakout of the broadening wedge. This mean than the asset is now in a downtrend until another pattern comes turning the trend again or if the price close back above 3226 again.
Even though the momentum is now to the downside I would not sell blindly. the safest bet is to wait a retest of the support turn resistance (3226) and the try a short entry.
the target of the pattern is 3070 minimum. It is true that the drop was quick as it often is with corrective waves.
This idea is closed but I will make a new one (short this time) if a good opportunity present itself.
