As pointed out in my related idea below, SPY is currently in a clear rising wedge that the bulls do not want to let go of.
As you can see in the chart above, price has broken to the bottom of the wedge and is currently riding it up with the bottom of the wedge acting as resistance.
These are difficult to trade as price can essentially ride the bottom trend line of the wedge for a while before finally dropping, or perhaps never dropping at all and making an entirely new pattern after enough time has passed. It's rare that the price can go back inside the wedge but I have seen it happen on a few occasions. Rising wedges are usually bearish, but if you look back to the early 2019 recovery, SPY was in rising wedge and rode the bottom of the wedge upward before forming an entirely new pattern.
Lookout for other patterns or areas of S/R (confluence) to support your trade.
As you can see in the chart above, price has broken to the bottom of the wedge and is currently riding it up with the bottom of the wedge acting as resistance.
These are difficult to trade as price can essentially ride the bottom trend line of the wedge for a while before finally dropping, or perhaps never dropping at all and making an entirely new pattern after enough time has passed. It's rare that the price can go back inside the wedge but I have seen it happen on a few occasions. Rising wedges are usually bearish, but if you look back to the early 2019 recovery, SPY was in rising wedge and rode the bottom of the wedge upward before forming an entirely new pattern.
Lookout for other patterns or areas of S/R (confluence) to support your trade.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.