Chart Analysis #2 $SPX
Technical analysis, chart indicator
Highlights for this Blog
Technical Analysis
TLDR
My Chart Analysis Indicator
📊 Technical Analysis
Visit my previous blog if you're interested in my trading strategy!
Chart Platform
I utilize the TradingView platform and perform chart analysis using the ‘Pro Bundle’ suite.
Trend Status
I analyze trends using the higher time frames (HTF).
Primary trend (monthly, weekly) is bearish 🔻
The secondary trend (daily, 12 hour) displays mild bullish price action, while a bearish divergence cycle has appeared on the 4-hour chart..
Risk Level
My trading indicators show high and low risk trading zones.
HTF charts currently indicate a medium risk level.
Quick Analysis
The primary trend (monthly chart) shifted to bearish on Sep 1, 2023. From that point, my indicators have signaled 4 swing trades (shorts) as shown in above chart.
A few opportunities to go long on the 2-hour chart presented themselves, but I adhere to a disciplined approach. If the primary trend is bearish, I concentrate on shorts.
Lets break down the 1 hour chart.
#1 Determine the trend on the current chart by locating the purple line in the lower section of chart.
If it is near the 20 mark then the trend will be bearish.
If it is near the 80 mark then the trend will be bullish.
#2 Identify the divergence pattern. (Refer to this blog for details on divergence indicator)
When trend is bearish, the yellow lines form a divergence (which look like inverted V shape) right above the purple line.
#3 My trading strategy is to identify strong divergence on charts and trade it for a profit.
Every time the yellow line reaches a peak and levels out, experienced traders actively scale in and short the highs.
In this case, the divergence is strong and hence the price action is quite profitable. When the purple line is near or below the 20 mark, you can spot a strong divergence with ease.
✍️ TLDR
The $SPX currently follows a bearish trend. My chart displays 4 swing trades. All of these were shorts. Having a trading strategy and opening trades with a clear plan is important. You should avoid trading in both directions for quick profits.
While the trend is bearish, the divergence indicator helps in predicting the next divergence cycle with high probability as long as the purple line stays near or below the 20 mark.
My Chart Analysis Indicator
I use the 'Pro Bundle' to analyze charts on the TradingView platform. Pro bundle is the result of countless hours of expert research, experimentation, and refinement, drawing upon the collective wisdom and experience of seasoned professionals. It is a trading framework with a set of rules that help analyze any market condition, formulate buy and sell signals without any ambiguity or any subjective elements.
This bundle, with its user-centric outlook, actively transforms the potentially overwhelming world of data and all vital signals into two straightforward indicators (Pro indicator, Divergence Wave Indicator) that are compatible with the free basic plan on TradingView platform.
Get ready for an irresistible deal! The first 1000 users are being offered a golden opportunity - FREE lifetime access! Don't let this chance slip away. Elevate your trading game to pro-level. Hurry, before it's too late!