Daily Analysis + 4HS setup on E-mini S&P 500 by ThinkingAntsOk
First, we are going to start with the Daily Analysis
Main Items we see on the chart:
a)Price is inside an Expanding Triangle
b)Using Elliott Wave Theory to understand the formation of any structure, we can see that A B C and D are already formed, continuing with Elliotts Logic an E wave is remaining, this Wave theoretically should make and impulse towards the lower trendline of the Expanding Triangle
c)If we take a look at the Volume we can see how during the bullish movement there was a steady decreasing on it, this can be interpreted as a weakness of the bullish strength and a lack of interest on the price zone.
Based on this we see a bearish scenario ongoing and we are developing a short setup on a lower timeframe, let's take a look.
4HS SHORT SETUP
a) Price is against the higher trendline of the Expanding triangle, this trendline will tend to act as a Resistance
b)We can see how the ascending channel was broken, this gives us an important signal of weakness on the bullish side.
c) Take a look at MACD and see the clear Divergence between multiples waves, 4 to be exactly.
d) At the top of the bullish trend, we can see a Head and Shoulders Formation, this type of formation is considered a Reversal structure
Out trade Idea is to look for a new bearish impulse and then wait for a pullback to the neckline of the structure, This setup will give us a good Risk Reward Ratio, with the possibility of setting our ENTRY / TAKE PROFIT and STOP on really good technical spots. However, we will wait for
confirmations before taking a short setup on E-mini S&P 500, In case the scenario we are waiting goes as expected we will update this trade idea on a new post with our exact setup.
Main Items we see on the chart:
a)Price is inside an Expanding Triangle
b)Using Elliott Wave Theory to understand the formation of any structure, we can see that A B C and D are already formed, continuing with Elliotts Logic an E wave is remaining, this Wave theoretically should make and impulse towards the lower trendline of the Expanding Triangle
c)If we take a look at the Volume we can see how during the bullish movement there was a steady decreasing on it, this can be interpreted as a weakness of the bullish strength and a lack of interest on the price zone.
Based on this we see a bearish scenario ongoing and we are developing a short setup on a lower timeframe, let's take a look.
4HS SHORT SETUP
a) Price is against the higher trendline of the Expanding triangle, this trendline will tend to act as a Resistance
b)We can see how the ascending channel was broken, this gives us an important signal of weakness on the bullish side.
c) Take a look at MACD and see the clear Divergence between multiples waves, 4 to be exactly.
d) At the top of the bullish trend, we can see a Head and Shoulders Formation, this type of formation is considered a Reversal structure
Out trade Idea is to look for a new bearish impulse and then wait for a pullback to the neckline of the structure, This setup will give us a good Risk Reward Ratio, with the possibility of setting our ENTRY / TAKE PROFIT and STOP on really good technical spots. However, we will wait for
confirmations before taking a short setup on E-mini S&P 500, In case the scenario we are waiting goes as expected we will update this trade idea on a new post with our exact setup.
