Hello everyone: Today, I will update the new price movements on the US500 chart + Update the setups I'm looking for.
The charts you can use are US500 / ES! / SPX (in case you are interested in understanding the index.)
Ok, so let's go to the trading plan:
Based on past scenarios, I'm interested in developing setups in two situations/scenarios.
Bullish trade: Now that we have observed the breakout of the main descending trendline PLUS the correction after that. The minor resistance level around 4590 is a zone where I'm interested in looking at the 1H chart, waiting for a minimum 7Hs correction, and trading it on a new high, with a target on RESISTANCE 1.
Bearish trade: IF I see a breakout, I will wait for a clear correction on the 1H chart (minimum around 10 to 15 HS) (Its also important to see that the price CLEARLY made a retracement) If that happens I will set pending orders on a new low with a target on the SUPPORT 1
The risk I tend to use on these setups due to the low execution rate is between 1% to a MAX 3% risk per trade of my capital. That means that each stop loss = -1 to -3% of my capital.
Remember that every time we place a setup on the market, we have 0 power to control the outcome; however, we may understand the characteristics of 60 outcomes, and determine that on average half of the time you are right, and every time you are right you make 2 dollars, and every time you are stopped out, you lose 1 dollar. Congratulations, that's a profitable system, or in other words "having an edge".
Thanks for reading! Please feel free to share your view in the comments.
The charts you can use are US500 / ES! / SPX (in case you are interested in understanding the index.)
Ok, so let's go to the trading plan:
Based on past scenarios, I'm interested in developing setups in two situations/scenarios.
Bullish trade: Now that we have observed the breakout of the main descending trendline PLUS the correction after that. The minor resistance level around 4590 is a zone where I'm interested in looking at the 1H chart, waiting for a minimum 7Hs correction, and trading it on a new high, with a target on RESISTANCE 1.
Bearish trade: IF I see a breakout, I will wait for a clear correction on the 1H chart (minimum around 10 to 15 HS) (Its also important to see that the price CLEARLY made a retracement) If that happens I will set pending orders on a new low with a target on the SUPPORT 1
The risk I tend to use on these setups due to the low execution rate is between 1% to a MAX 3% risk per trade of my capital. That means that each stop loss = -1 to -3% of my capital.
Remember that every time we place a setup on the market, we have 0 power to control the outcome; however, we may understand the characteristics of 60 outcomes, and determine that on average half of the time you are right, and every time you are right you make 2 dollars, and every time you are stopped out, you lose 1 dollar. Congratulations, that's a profitable system, or in other words "having an edge".
Thanks for reading! Please feel free to share your view in the comments.
