MVedra

S&P 500 - Divergence Spotted: Short. Building on a view

Short
OANDA:SPX500USD   S&P 500 Index
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1
Short opportunity identified over 3hr bars, with a clear price-RSI divergence. I have the same short view over different time frames (see links), but this one confirms my view with S&P500's relative fading strength.

I hate over-fitting charts with indicators as markets are too uncertain for that, so I generally have two key moments in mind: a) the price level which tells me key support/resistance for traders, and psychology, and b) indicators for momentum.

If the price approaches 2400, on a relatively extreme run-up, then odds are in our favour to be correct on this trade. Ideal signal would be an RSI below 80 (lower high) and price near 2400.
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