S&P500 longer term LONG trade looking to capture Wave 5
Analysis:
I've seen SP500 create a short term top at the completion of wave 3 of Wave 5.
It is in the process of creating a wave 4 of Wave 5. Currently it looks like a triangle/bullflag but can become a wedge as well.
Hypothesis:
I am looking for a wave 4 pullback to the orange dotted line, where I have indicated by the blue arrow. (fib confluence area)
Price should bounce from this area and start the 5th wave.
I plan to hold throughout the 5 waves of wave 5.
Risk Management:
Trade potential 5:1
Take off half at 2:1, and move stops to Break even. Let rest ride to Target.
note:
(if a trade provides 3:1, I recommend taking half off at 1:1 , moving rest to Break even, & letting the rest ride... if the trade pans out the total reward made will be 2:1)
(if a trade provides 5:1, I recommend taking half off at 2:1 , moving rest to Break even, & letting the rest ride... if the trade pans out the total reward made will be 3.5:1)
PS: If my analysis is to your liking... please like the post & subscribe. Thanks.
I've seen SP500 create a short term top at the completion of wave 3 of Wave 5.
It is in the process of creating a wave 4 of Wave 5. Currently it looks like a triangle/bullflag but can become a wedge as well.
Hypothesis:
I am looking for a wave 4 pullback to the orange dotted line, where I have indicated by the blue arrow. (fib confluence area)
Price should bounce from this area and start the 5th wave.
I plan to hold throughout the 5 waves of wave 5.
Risk Management:
Trade potential 5:1
Take off half at 2:1, and move stops to Break even. Let rest ride to Target.
note:
(if a trade provides 3:1, I recommend taking half off at 1:1 , moving rest to Break even, & letting the rest ride... if the trade pans out the total reward made will be 2:1)
(if a trade provides 5:1, I recommend taking half off at 2:1 , moving rest to Break even, & letting the rest ride... if the trade pans out the total reward made will be 3.5:1)
PS: If my analysis is to your liking... please like the post & subscribe. Thanks.
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