Follow-Up to Trade #1 - S&P 500 Short (Target Hit!)

jamesbrown (62)in #stockmarket • 8 years ago (edited)

This is a follow up to My Trades #1: Short S&P 500 CFCD (FXCM)

Patience Pays Off on The Short:

https://www.tradingview.com/x/T2NP87Un/

The build up was slow and it was starting to look towards the end like the highs right below the stop-loss would be tested, building up a series of higher highs and higher lows, but, as often happens with overbought markets, the bottom suddenly fell off and big gouges in price ensued.

The target ended up being surpassed by a relatively large, and quick, price move, meaning that a lot more profit could have been taken out of this market, but, you know what, that's quite alright. It was a smart trade - the right trade - to target the strong support zone (price level that we're shown by the chart history to have high demand). Targeting below that level is a low probability trade. The fact that it surpassed that level today, and so quickly, is against the grain of the market. It tells us that the market is very bearish right now.

Next possible trade from here is a short of a test of that lowest yellow box (the aforementioned "strong support zone", now "resistance zone"). This trade will go on watch to see how this develops.

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.