SPX500. Where to look for purchases and sales.
Updated
Hello traders and investors!
Let's analyze the SPX500.
Weekly Timeframe Analysis:
A buyer's impulse has formed on the weekly TF with an impulse base of $5193.1. The seller performed well, showing a good spread and volume. Key impulse candle from 06/10/24 (candle with the highest volume in the impulse, “KC” on the chart), its close is slightly below 50% of the impulse. I assume that the seller will lower the price to the key candle, where it will be necessary to evaluate the buyer’s actions to search for purchases.
Daily Timeframe Analysis:
On the daily timeframe, the seller broke through the bottom of the buyer's last impulse ($5577.4). The seller's impulse is not over yet, since there has not been a buyer's candle yet. The base of the seller's momentum is $5680.4. While the seller is protecting the $5577.4 level, it is advisable to look for sales.
2H Timeframe Analysis:
On the 2-hour time frame, the price formed a sideways movement (the lower border of the sideways movement is $5577.4). Then the seller broke through the lower border of the sideways movement and launched a short trend. The base of the seller's last impulse is $5568. 50% of the seller's last impulse – $5536.1.
On the 8-hour timeframe and the 4-hour timeframe, the price situation is similar to the 2-hour timeframe. The initial level of the seller's last impulse is $5568. 50% of the seller's last impulse – $5536.1.
Thus, in the range of $5577.4 - $5568 there is a context for searching for sales on the daily, 8-hour, 4-hour and 2-hour timeframes.
Selling Strategy:
Buying Strategy:
Let's analyze the SPX500.
Weekly Timeframe Analysis:
A buyer's impulse has formed on the weekly TF with an impulse base of $5193.1. The seller performed well, showing a good spread and volume. Key impulse candle from 06/10/24 (candle with the highest volume in the impulse, “KC” on the chart), its close is slightly below 50% of the impulse. I assume that the seller will lower the price to the key candle, where it will be necessary to evaluate the buyer’s actions to search for purchases.
Daily Timeframe Analysis:
On the daily timeframe, the seller broke through the bottom of the buyer's last impulse ($5577.4). The seller's impulse is not over yet, since there has not been a buyer's candle yet. The base of the seller's momentum is $5680.4. While the seller is protecting the $5577.4 level, it is advisable to look for sales.
2H Timeframe Analysis:
On the 2-hour time frame, the price formed a sideways movement (the lower border of the sideways movement is $5577.4). Then the seller broke through the lower border of the sideways movement and launched a short trend. The base of the seller's last impulse is $5568. 50% of the seller's last impulse – $5536.1.
On the 8-hour timeframe and the 4-hour timeframe, the price situation is similar to the 2-hour timeframe. The initial level of the seller's last impulse is $5568. 50% of the seller's last impulse – $5536.1.
Thus, in the range of $5577.4 - $5568 there is a context for searching for sales on the daily, 8-hour, 4-hour and 2-hour timeframes.
Selling Strategy:
- Seller protection levels $5577.4 or $5568.
- Seller protection 50% of last impulse - $5536.1
Buying Strategy:
- When the price reaches the range of $5328 - $5436, look for patterns for purchases.
- If the buyer returns the price above $5577.4 and protects this level.
Note
Look at how the seller defended the $5577.4 - $5568 range discussed in the post: "Thus, the $5577.4 - $5568 range has context for looking for sales on the daily, 8-hour, 4-hour and 2-hour timeframes."None of the 2-hour candles closed above this range.
On the weekly TF, the price reached 50% of the last impulse ($5436.8), and also touched the body of the key candle of the last impulse (indicated “KC” on the chart, the close of the candle is $5430.8).
On the 2-hour timeframe, the key candle of the seller’s last impulse is in the middle of the impulse and broke out the previous local minimum. To search for purchases, it will be better if the seller makes another impulse, the price consolidates below $5430.8 and the buyer collects volume there for the price to move up.
I'm watching to see if a buy pattern will form.
Note
Good luck with your trading!
t.me/user_friendly_trading
t.me/user_friendly_trading
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