My Trades #1: Short S&P 500 CFCD (FXCM)
4-Hour Candle (Zoom Out):
4-Hour Candle (Zoom In):
Legend:
1.) yellow boxes = horizontal price support/ resistance zones
2.) three simple moving average (SMA) lines: 1.) pink = 20 2.) red = 50 3.) blue = 200
3.) black lines = trend-lines (diagonal) and support/ resistance lines (horizontal)
4.) blue arrows = price levels pertinent to price pattern or horizontal price support/ resistance in question
5.) horizontal lines with percentages marked below them = fibonacci retracement/ extension levels (0% to 100% equals the full price swing in question, beyond that are the fib extension levels)
6.) red box (top) attached to green box (bottom) = short entry trade, where red is the risk (stop) and green is the reward (target)
Just to Be Clear:
This is a trade that I'm actually taking. This is in no way a suggestion that you should make this trade. I post this only for educational purposes.
Trade Outline:
Entry: 2180.40
Stop: 2195.40
Target: 2149.50
Reward to Risk: 2.06
Reasons Why I Decided to Take the Trade:
1.) Double top with 61.80% retracement off of a relatively deep correction (the "2618 trade", coined by this professional trader (brings you to Jason Stapleton's youtube video, where he provides a link to an in-depth description of this trade set-up)
2.) Bearish 20/50 SMA crossover
3.) 20 SMA confluence support with 61.8% retracement
4.) Prior ATH is still yet to be tested since price has busted it. This bullish impulse is starting to feel as if it's getting a little "long in the tooth" - perhaps a major correction is in order.
Connect:
Please share your your views on my trade set-up, @jamesbrown. I invite constructive criticism. Also, feel free to make your own trade suggestions. I'm always open to different market perspectives and I never want to stop learning.
l trade everything from crypto-currencies, to currency pairs, to commodities like gold and silver, to individual stocks, to stock indices, trusts and ETFs. If you have any questions about any of these markets, would like to share your perspectives on any of these markets, or would simply like to have a discussion about them, feel free to message me on the comments section of this, or any of my trading related posts.
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See all the trades that I post here on Steemit by searching #mytrades