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SP500 Short OpportunityHi traders, SP 500 is in a corrective cycle that started at the beginning of 2022. We do expect further down to end the WXY corrective structure. This will create new lows and it will break down the 3480 level. Considering that, we can take advantage of it by trading the end of B in the intermediate degree (blue) and riding the whole wave C before ending the corrective cycle WXY of wave 2 and starting the new bullish cycle. Short potential idea: Entry: 4144 SL: 4442 Target: 3210 Risk: max 2% of your account Always keep in mind that risk management is, at least, as important as the entry-level or the SL. Remember the quote “If you do not manage the risk, you will not have any risk to manage” The market is always repeating the same type of defined structures. There are only two main wave types: the motive wave and when the motive wave ends it starts a corrective wave. Within them, there are only 3 motive waves structures (Impulse, leading diagonal , and ending diagonal ) and 5 main types of corrective structures (ABC, WXY, Flats, triangle, WXYXZ (triple correction)) Learning them and being able to spot them in the price action graphs will completely change the way you trade as these structures will provide entry point areas, invalidation levels, and targets for the trade. Have a safe and profitable trading day Please feel free to express your ideas and thoughts in the comment section. DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it is only the explanation of what we are going to do and it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
OANDA:SPX500USDShort
by TradingtheRightSide
Ahead of the FOMC, the path to prediction with the Elliott waveThere are two high-probability perspectives seen in the current interval. Route 1, Route 2 In both cases, we started counting from the 18.1k low. First, Route 1. From 18.1k to 19.9k A, it rose in 5 waves. Since then, it has had the characteristics of B (abc) wave and B wave, which are clearly visible, and I saw it as B wave up to 18.6k. Moving waves from 18.6k are difficult. The difference between the Route 1 and Route 2 perspectives is whether one more wave rise is left or whether the upward wave is over, while Route 1 is the view that the upward wave is closed. The ratio of waves A to C dropped very neatly to 1:1.382. It's usually one of the percentages shown by ABC, so if you leave the light blue parallel channel like this, you're more likely to be from this perspective. Second, Route 2. From 18.1k to 19.9k A, it rose in 5 waves. Since then, it has had the characteristics of B (abc) wave and B wave, which are clearly visible, and I saw it as B wave up to 18.6k. Route 1 and this perspective are the same, but the difference arises in how far you look at the C wave. The recent uptrend has been strong, and since the light blue parallel channel has not broken downward from yesterday's decline, we believe that one more wave rise remains. The wave from the high, labeled C-3 wave, also appears to have ended in abc. In this view, the C wave is expected to rise one more wave to 21.5k ~ 21.6k, which is the value of 1.618 A wave, and overlap with the parallel channel break line. When 21.5k ~ 21.6k comes, the short position seems to have a good profit and loss ratio. If you leave the light blue parallel channel, the probability that it is Route1 is up If you creep up without leaving the light blue parallel channel, the probability that it is Route2 is up. Let's respond to the direction in which the BTC moves. The FOMC interest rate issue is scheduled for November 3. Since this is the last rate announcement of the year, volatility is expected to be high. There have always been a lot of lateral movements before the FOMC issue, so watch out for fake movements!
Short
by BeastTrading_Sehyun
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