S&P 500 Ascending Channel - Long Position
Entry: $3,795.3
TP & RR: $3,873.6 (3.26)
Stop Loss: $3,771.3
REASONS FOR THE TRADE
I believe the price will respect the lower trendline in this ascending channel and will continue trending up. Initially, we had the order at a lower level, but it seemed that we wouldn't get a fill, so we trialed it up.
Needless to say, if the price breaks through it, I am expecting a fairly sharp drop and will be looking for a short position. The current entry is at a support level, which while being a bit conservative, gives us a good RR with the SL far enough and with enough room for the trade to breathe. If the price dives down or does something unexpected, we will close the order prematurely.
Entry: $3,795.3
TP & RR: $3,873.6 (3.26)
Stop Loss: $3,771.3
REASONS FOR THE TRADE
I believe the price will respect the lower trendline in this ascending channel and will continue trending up. Initially, we had the order at a lower level, but it seemed that we wouldn't get a fill, so we trialed it up.
Needless to say, if the price breaks through it, I am expecting a fairly sharp drop and will be looking for a short position. The current entry is at a support level, which while being a bit conservative, gives us a good RR with the SL far enough and with enough room for the trade to breathe. If the price dives down or does something unexpected, we will close the order prematurely.
Trade active
We got a fill, but I am noticing weakness across the board and this troubles me a bit. Since I will not be behind my desk to monitor the position I decided to close it temporarily.This is not a recommendation for you to do the same, as the Market Flow indicator is still trending up and nothing shows a major change of what we discussed above.
However, it's a good idea to move your SL up as price filled us earlier than expected. A sensible level would be somewhere around $3,780.3 which is still below the trendline.
I am leaving this trade as active and I will update it in the morning (EU time).
Trade closed: stop reached
Unfortunately, the stops were hunted here and those with the adjusted SL would have been hit. I closed my position before the small drop as described above.With the original SL this trade would still be active and I would suggest trialing the SL up, locking in profits.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.