FullTimeTrader

SPX500-typical diamond-long term decline expected

بيع
FX:SPX500   مؤشر ستاندرد آند بورز 500
44
Im very excited because i think we have a very nice short opportunity on SPX that could last months.
I feel "confident" because this price behaviour is common after a diamond pattern.
I know this pattern very well, i have traded succesfully it before:

A diamond pattern 80% of times means trend-change. After it price usually makes deep retracements (0.7860 or 0.8860) but most important will not MAKE NEW HIGHS.

According to EW price usually forms a series of 1-2s or leading diagonal, this means a strong third wave is expected.

I will try to enter enter short near the 0.7860 and 0.8860 fib retracement.

We can use this setup also.

- corrective channel
- AB=CD pattern
- trendline resistance
- 1.27 fib extension

Entry price around 2050.

Best regards.



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