S&P500 | H1 Head and shoulders | GTradingMethodHello Traders.
🧐 Market Overview:
I am still holding a short on the rising wedge visible on the 4-hour chart. While the S&P 500 has broken out to the upside of the wedge, there’s still a real chance this could be a fake out.
The RSI is showing overbought conditions across the 1H, 2H, and 4H timeframes, which makes it difficult for price to push higher without cooling off first. From a probability standpoint, I see the short as more favorable here than chasing longs.
With hindsight I should have waited for a reversal pattern to open shorts when trying to trade the risking wedge on the 4 hour chart.
If the head and shoulders pattern on the 1H chart fails, then a possible double top on the 2H chart may form. I’ll post an update if that scenario plays out and I have time.
NB! I do not have confirmation to enter the head and shoulders short yet. It is only on my radar for now.
📊 Trade Plan:
Risk/Reward: 3.8
Entry: 6 589.7
Stop Loss: 6 599
Take Profit 1 (50%): 6 560.2
Take Profit 2 (50%): 6 544.2
💡 GTradingMethod Tip:
A favorable setup doesn’t guarantee success, but managing risk and aligning with probability is how I stay consistent over the long term.
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📌 Please note: This is not financial advice. This content is to track my trading journey and for educational purposes only.
