This entry is a long-term analysis of SP500 since it is a safe value index that we can constantly see how it increases annually.
Its clear that by operating this pair we will not see how in a few months we double the capital of the account, but I would like to record the method I use to operate on the stock market.
Now I am going to explain why I entered in two opposite positions (it is not profitable to do so). In my case I've burned my trading account after several negative operations.
Doing a little backtesting I have been able to verify that I've been dominated by emotions and I have not made good trades due to the desire to recover money and not be in losses for long days weeks and months.
In this technical analysis we can see how the index is in the highest part of the ascending channel. After going up since the beginning of February we can see how it just had a rebound in the 4h chart, with the help of the indicators we can see that the price is overbought and should drop shortly. (As the capital of my account is so scarce, I did not want to risk that the price would continue to rise in the short term and lose my short-term sales position. For this reason I have decided to put "a security" so that in the case if so, skip the margin call and close the account)
The first sales position is in a term of days to weeks.
We put a SELL at 3952.8; TP: 3778.5; SL: 4013.9
In the short term, it should make a correction, as we can see in the doji candles indicate indecision on the price and indicators are in overbought. Therefore we can predict a reversal in the trend.
We must also bear in mind that with the end of the pandemic companies will raise their prices and therefore we can expect a bull market by the end of the pandemic.
The second operation is a long-term buy position (At least until 2022)
In this case I have not entered a good price since it is in the upper part of the channel (I have already explained why this operation).
In the case of hitting the first operation, when the price is above 3778.5 or when the price action begins to reverse, I will put another purchase position to recover the losses of the first position in half the pips, the col It is a long-term since according to my predictions it will continue to rise to 4800
As we can see the growth of the previous year was 50% and I hope that this year is similar.
The third operation is a purchase in the 3780 area if the conditions are met so that the market does not break the bullish channel and continue its trend, for that there is still a lot of time.
Any advice or recommendation leave a comment.
Thanks
Its clear that by operating this pair we will not see how in a few months we double the capital of the account, but I would like to record the method I use to operate on the stock market.
Now I am going to explain why I entered in two opposite positions (it is not profitable to do so). In my case I've burned my trading account after several negative operations.
Doing a little backtesting I have been able to verify that I've been dominated by emotions and I have not made good trades due to the desire to recover money and not be in losses for long days weeks and months.
In this technical analysis we can see how the index is in the highest part of the ascending channel. After going up since the beginning of February we can see how it just had a rebound in the 4h chart, with the help of the indicators we can see that the price is overbought and should drop shortly. (As the capital of my account is so scarce, I did not want to risk that the price would continue to rise in the short term and lose my short-term sales position. For this reason I have decided to put "a security" so that in the case if so, skip the margin call and close the account)
The first sales position is in a term of days to weeks.
We put a SELL at 3952.8; TP: 3778.5; SL: 4013.9
In the short term, it should make a correction, as we can see in the doji candles indicate indecision on the price and indicators are in overbought. Therefore we can predict a reversal in the trend.
We must also bear in mind that with the end of the pandemic companies will raise their prices and therefore we can expect a bull market by the end of the pandemic.
The second operation is a long-term buy position (At least until 2022)
In this case I have not entered a good price since it is in the upper part of the channel (I have already explained why this operation).
In the case of hitting the first operation, when the price is above 3778.5 or when the price action begins to reverse, I will put another purchase position to recover the losses of the first position in half the pips, the col It is a long-term since according to my predictions it will continue to rise to 4800
As we can see the growth of the previous year was 50% and I hope that this year is similar.
The third operation is a purchase in the 3780 area if the conditions are met so that the market does not break the bullish channel and continue its trend, for that there is still a lot of time.
Any advice or recommendation leave a comment.
Thanks
Comment:
We are in the half of the road. Move (SELL SL - BE or 3941,6)
Comment:
Close half SELL at 3830
Comment:
Hit TP last night.
Now we open a BUY at the same price of TP (3779) and wait for at least 15 days
Now we open a BUY at the same price of TP (3779) and wait for at least 15 days
Comment:
Buy position hit SL.
The price has gone out of the analysis range, stop trading until next oportunity
The price has gone out of the analysis range, stop trading until next oportunity