SPX500 LONG SETUP IDEA
Entry: $3,715.9
Stop Loss: $3,680.5
TP Levels and RR: $3,784.4 (1.94)
REASONS FOR THE TRADE
I know that I am posting this with a bit of hindsight, but by the time I opened my order and came back to do the analysis the price has already gone up. Anyway, I am posting this in case there's a small retracement and you decide to jump on board.
The indicator Trend Volume RSI Analysis shows a clear divergence in the volume and you can also see the buying and selling distribution in the Multi Time Frame Effective Volume Profile below. I have also applied a Fib Retracement to this ascending triangle, which indicates that the take profit should occur somewhere near the potential resistance.
The SL level is put at a level far enough from the trend line. You can be slightly more aggressive here and move the SL up, which would significantly improve your RR Ratio. Generally speaking, breaking down this trendline would invalidate the setup, so if you have taken that particular trade you may close your position before hitting the SL.
Entry: $3,715.9
Stop Loss: $3,680.5
TP Levels and RR: $3,784.4 (1.94)
REASONS FOR THE TRADE
I know that I am posting this with a bit of hindsight, but by the time I opened my order and came back to do the analysis the price has already gone up. Anyway, I am posting this in case there's a small retracement and you decide to jump on board.
The indicator Trend Volume RSI Analysis shows a clear divergence in the volume and you can also see the buying and selling distribution in the Multi Time Frame Effective Volume Profile below. I have also applied a Fib Retracement to this ascending triangle, which indicates that the take profit should occur somewhere near the potential resistance.
The SL level is put at a level far enough from the trend line. You can be slightly more aggressive here and move the SL up, which would significantly improve your RR Ratio. Generally speaking, breaking down this trendline would invalidate the setup, so if you have taken that particular trade you may close your position before hitting the SL.
Trade active:
Time to move the Stop Loss just below the trend line to minimize exposure. If the trade goes against us, worst-case scenario we will end up close to break even.
An alternative way to manage the trade would be to sell 1/3 of the position here and buy back if a small retracement occurs.
An alternative way to manage the trade would be to sell 1/3 of the position here and buy back if a small retracement occurs.
Trade closed: target reached:
Target reached with almost 2R. This was a pretty conservative trade.
If you were an aggressive player, then you may have bought again at $3,710 with a tighter stop at $3,695 for a staggering 8R return. Anyway, that's a thought trade to execute and endure, so I am throwing it in here just as food for thought.
If you were an aggressive player, then you may have bought again at $3,710 with a tighter stop at $3,695 for a staggering 8R return. Anyway, that's a thought trade to execute and endure, so I am throwing it in here just as food for thought.