S&P 500 Breakout?

7 Haz 2021

Goodmorning All,

The S&P 500 is ready to breakout?
While i am looking to the chart I see a good possibility for a breakout. But, i wait 3 days for my 'confirmation'.

As Technical Analysis is looking for opportunities. But as I learned in the process is that receiving signals is 1 and waiting for those signals to be confirmed is 2.

I see a potentially breakout because it has met with my criteria (trading setup)..

1st the signal.
The 5 day MA must be ranging above the 20 day MA = Correct

2nd
The DMI + must be higher than 24.5 = Correct

3rd

The RSI must be ranging above 50 = Correct

Signal received

What I do next is MY RULE
I wait for 3 days to see the subsequent price action. Does is it move/breakout the resistance line?
+
it can be a filter to filter out the stop orders placed beyond the breakout/resistance line.. (psychology)

If Yes It put in my stakes and go long.

If not
I saved myself some money & I be proud on my self for trading with a system and having the patience.

This is one of the setups i trade myself.

PS It is always good to inform yourself about the Fundamentals in the market to. The best traders combine Fundamentals with Technicals.

Please feel free to share, comment or leave a like for more hindsight information in the future.

Quote of the day;
Plan your trades & trade your plan!