Possible Short Opportunity on SPX?
I want to start this by saying my entire idea is based solely off of TA, I have no insight as to the future of the US financial market as a whole. With that said I bring a bold claim that we're headed for a doozy of a retrace.
I create Ideas based on my understanding of long form consolidation. I see a lot of people using wedges all ready, many also use resistance channels, both are great. But not great enough, I found they always moved unpredictably, sometimes going straight up, teeter-tottering, or going straight down. It was a gamble and not a very good one at that. So I turned my short wedges long. Give it a try I'm sure you'll see a lot of daily top gainers form an identical pattern of big runs and at some times multi year long consolidation wedges. Now I'm not saying these are perfect they're hard to spot and are often highly precise, just like other setups you might be tricked. Here's my guide to spotting one of these.
Step 1, Identify your run it should be a big move and fairly apparent.
Step 2, find your top and bottom. I believe in the above idea that my bottom line would be a textbook example of a catch the top has a little more wiggle to go to the true high of the run but at this moment I believe it is true also.
Step 3, wait or spot your fake brake it will be sizable if real it needs to be enough to sufficiently exchange shares between buyers and sellers
Step 4, wait for the completion of the wedge. Completion before the end of the wedge means your lines are off by a sizable amount and a new down cycle has started. Any wedge completion made before a true consolidation wedge is at its last minute is not true and the wedge is either off or is made from the wrong points. A true move will not hesitate it has no resistance at the wedge no look back at the SPX in 2013 once it gets past the wedge at the 1500 level (that's the reason this last run/bull trap is untrue It went above the wedge then back bellow).
this market will repeat a slightly different version of the cycle from 2000 to 2010 ofc all imo :)
I create Ideas based on my understanding of long form consolidation. I see a lot of people using wedges all ready, many also use resistance channels, both are great. But not great enough, I found they always moved unpredictably, sometimes going straight up, teeter-tottering, or going straight down. It was a gamble and not a very good one at that. So I turned my short wedges long. Give it a try I'm sure you'll see a lot of daily top gainers form an identical pattern of big runs and at some times multi year long consolidation wedges. Now I'm not saying these are perfect they're hard to spot and are often highly precise, just like other setups you might be tricked. Here's my guide to spotting one of these.
Step 1, Identify your run it should be a big move and fairly apparent.
Step 2, find your top and bottom. I believe in the above idea that my bottom line would be a textbook example of a catch the top has a little more wiggle to go to the true high of the run but at this moment I believe it is true also.
Step 3, wait or spot your fake brake it will be sizable if real it needs to be enough to sufficiently exchange shares between buyers and sellers
Step 4, wait for the completion of the wedge. Completion before the end of the wedge means your lines are off by a sizable amount and a new down cycle has started. Any wedge completion made before a true consolidation wedge is at its last minute is not true and the wedge is either off or is made from the wrong points. A true move will not hesitate it has no resistance at the wedge no look back at the SPX in 2013 once it gets past the wedge at the 1500 level (that's the reason this last run/bull trap is untrue It went above the wedge then back bellow).
this market will repeat a slightly different version of the cycle from 2000 to 2010 ofc all imo :)
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