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S&P 500 Volume Profile AnalysisAll travel from Europe to US suspended This step is in my opinion a good precaution to stop the corona virus from spreading across the globe. But what does this mean for the US economy? A severe blow! Bringing a big industry like intercontinental airlines to a 30 day halt will have economical consequences. Also it is not just this industry but also all the industries that are somehow linked to airlines. I was not surprised when I saw the biggest US stock index S&P 500 drop after this news. What does the current selling on S&P 500 mean for us traders? In my opinion this is an opportunity. US economy is strong and nothing like this could bring it to it’s knees. Also, a pullback after years of a crazy strong uptrend is a healthy thing for the market. S&P 500 discounted I like to talk about investment assets as if they were regular stuff you buy in a store. Imagine that you go shopping and the same thing which was $30 yesterday is now $20. It is the same thing as yesterday, same quality, same manufacturer. What does a reasonable person do? He buys all he can carry and store, right? Because the stuff is discounted! We can apply the same approach to S&P 500. Pullback in S&P chart means a discount. In my opinion S&P 500 is a “good quality product that won’t spoil”. So the only question is how big the pullback needs to be before S&P gets real cheap and the big guys start pushing the price upwards again. Volume Profile analysis The best tool to uncover the strongest institutional supports and resistances is the Volume Profile. I opened a monthly chart of S&P 500 and looked 12 years back to see how the volumes were distributed in this whole period. This is the sort of BIG picture you want to examine when thinking over long-term trades. The heaviest volumes in this 12 year period were accumulated between years 2014 and 2016 around 2070.00. From there a strong buying activity started again. When there is a pullback big enough to hit this significant Volume Cluster sometime in the future then I think aggressive buyers will come into the market again and they will start buying like crazy. This should move the price upwards again. As you can see from the picture above, the price is currently at another significant Volume Cluster. This could also prove to be a strong support and turn the price upwards again. But if you want to buy with a real BIG discount, then 2070.00 is the place I would picked for a big buy. Long-term investment With this kind of trade you need to treat it like a very long-term investment.This is not swing trade you hold for a few days and then get rid of it. This is a position to hold for a couple of years. With such a kind of an investment you need to think about it like this: First the asset needs to be good. You need to like the S&P 500 and you need to believe in it. You need to believe in the US economy. Only then you should check out the chart and look for a place where you would like to buy it. I hope you guys liked this S&P 500 analysis. Let me know what you think in the comments below! Happy trading, -Dale
FX:SPX500
by Trader_Dale
3
EUR/USD- SECOND WEEK OF MY JOURNEY Hello Traders and Welcome. I will describe what the chart illustrates about the Euro Vs. U.S Dollar. A combination prediction of Trend reversal (short and long term), breakouts and pullbacks, with the most important figure of analysing charts and specific these market (The foreign exchange market, Forex, FX, or currency market) the Simplicity. No technical indicators no fundamentals. First of all, the downtrend line works like resistance and from the history has been tested several times, this trend line comes all the way back on 2018. Fan line is the line inside the trend channel, is not an accelerate trend line but works like that with one similar performance. If you move the mouse on the left you will see the formation of the downtrend channel and the support trend down line of this channel. The close tonight shows the fight of the bulls and the bears on daily time frame and the successful retest and not yet bounce the fan line that we mentioned above. I expect break of the resistance trend line and the second try to printed enough strong for break it. If the forecast proved successfully we can put new take profits targets of the major horizontal resistance key area, everything depends on the price action basically. Retrospectively, I suggest to have always two plans, depending on how the market moves and after apply the propriate risk management with the stop losses and the lot size, to comes first. From the finish of first week back to trading and 1 day off because the NYE, I am pretty confident and I close with profit of 346,56 Euro and not even 10% loss . Thank You very Much About Your Time Talk Again Soon (Friday 01:05 Athens, Greece) John Vasilopoulos
Long
by GiannisVasilopoulos