A few days ago I developed a bearish setup on the index, that is going well currently. However, we should always be ahead of the price, and get ready for possible outcomes, before the price is actually there. Please check my previous post on the link to related ideas to get a better idea of what I'm saying right now.
This is the current setup I have right now, and my personal view is that the bearish opportunity to trade this swing already happened. So I don't think is a good idea to short the market again at current levels and without structures.
The main level I'm waiting for is the support zone at 3750, as a take-profit zone. BUT what if the price reverse from the current level is currently in?. Where can I think about the first trading opportunity? The answer to that, based on my trading style, is above the yellow descending trendline. Here I will attach a picture of a previous scenario that happened in 2018 with similar characteristics.
So at the moment, I'm not taking any action. Either my setup reaches the bearish target, OR the price goes back to my entry-level, where I have moved my stop loss there and I close my position at $0. On the bullish side, the first scenario where I will start thinking about bullish opportunities is if the price breaks the yellow descending trendline.
Thanks for reading! Feel free to share your view and charts in the comments.
This is the current setup I have right now, and my personal view is that the bearish opportunity to trade this swing already happened. So I don't think is a good idea to short the market again at current levels and without structures.
The main level I'm waiting for is the support zone at 3750, as a take-profit zone. BUT what if the price reverse from the current level is currently in?. Where can I think about the first trading opportunity? The answer to that, based on my trading style, is above the yellow descending trendline. Here I will attach a picture of a previous scenario that happened in 2018 with similar characteristics.
So at the moment, I'm not taking any action. Either my setup reaches the bearish target, OR the price goes back to my entry-level, where I have moved my stop loss there and I close my position at $0. On the bullish side, the first scenario where I will start thinking about bullish opportunities is if the price breaks the yellow descending trendline.
Thanks for reading! Feel free to share your view and charts in the comments.
