S&P What's Next To Come..
Updated
4160 Proved Strong as a PA zone for Traders... That's why we looked short each time. Nonetheless the area remains short due to PREV PA zones highlighted to the left handside.
But... Areas like this are hit so many times before they break. The risk of each strike therefore inherently changes. It's wise to lower Size upon further hits on the same area as you have seen and leave remaining Trade size (lots) for extended moves up to more clear PA zones.
That comes around 4250. Often you will get times where markets fall for an extended period and are followed by indecision / sideways markets. That's because sentiment to the downside cools off and you get a rise in the price of the asset. Former Long zones become new short zones (re hitting resistance) and they take time to break if significant enough (or market sentiment is not strong enough either).
Dropping size can come in varying proportions. This can be halves/thirds/quarters or less as comfortable. If you are dealing in Risk % per trade its also wise to drop this per hit. This is a classic way to manage risk based on previous price history. Remember Markets will repeat themselves and not every trade consists of the same risk %.
Also note indicators like your Stoch Oscillator.. When they are high you should not buy. That is timeframe specific and not as a general view.
Trade safe and trade small.
But... Areas like this are hit so many times before they break. The risk of each strike therefore inherently changes. It's wise to lower Size upon further hits on the same area as you have seen and leave remaining Trade size (lots) for extended moves up to more clear PA zones.
That comes around 4250. Often you will get times where markets fall for an extended period and are followed by indecision / sideways markets. That's because sentiment to the downside cools off and you get a rise in the price of the asset. Former Long zones become new short zones (re hitting resistance) and they take time to break if significant enough (or market sentiment is not strong enough either).
Dropping size can come in varying proportions. This can be halves/thirds/quarters or less as comfortable. If you are dealing in Risk % per trade its also wise to drop this per hit. This is a classic way to manage risk based on previous price history. Remember Markets will repeat themselves and not every trade consists of the same risk %.
Also note indicators like your Stoch Oscillator.. When they are high you should not buy. That is timeframe specific and not as a general view.
Trade safe and trade small.
Comment
Exit shorts for first set of gains.Comment
Kill light longs for additional gains.Comment
Note you have a 'small fall' to early PA zones. No suprise given amount of hits.looking re short 4216 Risk averse.
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