$SPX - Channel Top
Price has retraced 78.6% of the previous move down and ended the week by closing on the highs with a widespread "bullish" candle. Or is it?
This is where the concept of strength and weakness appears. It's the opposite of what most think. When the market is getting strong, it cannot go down and when it's getting weak, it cannot go up. Most people associate strength with a rising market and weakness with a falling market. If you look at the charts and point out where the market has risen and fallen and notice what happened after the rise and fall, you'll see that this assumption is false. If the market is getting weaker as it's falling like most assume, then how could it possibly ever be able to rise? The same is true for a rising market. If it's getting strong as it rises, then how could it ever sell off if it's so strong? This change is perspective will help put things in context and help you notice where the herd almost always gets involved. On the highs, right where the market is getting "strong", right?
I expect there will be multiple chances to get short as it ebbs and flows before making the turn.
The 12h has a sell reversal pattern in the works right at the channel top.
Remember, keep your risk low and manage your trades.
Plan. Execute. Next.
Trade Less. Make More.
This is where the concept of strength and weakness appears. It's the opposite of what most think. When the market is getting strong, it cannot go down and when it's getting weak, it cannot go up. Most people associate strength with a rising market and weakness with a falling market. If you look at the charts and point out where the market has risen and fallen and notice what happened after the rise and fall, you'll see that this assumption is false. If the market is getting weaker as it's falling like most assume, then how could it possibly ever be able to rise? The same is true for a rising market. If it's getting strong as it rises, then how could it ever sell off if it's so strong? This change is perspective will help put things in context and help you notice where the herd almost always gets involved. On the highs, right where the market is getting "strong", right?
I expect there will be multiple chances to get short as it ebbs and flows before making the turn.
The 12h has a sell reversal pattern in the works right at the channel top.
Remember, keep your risk low and manage your trades.
Plan. Execute. Next.
Trade Less. Make More.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.