SPX Swing Trade, History repeating (CPI incoming)
The chart is self-explanatory, I have highlighted in the chart where we saw remarkably similar price action in the past.
I have identified two different structures in the chart, a parallel channel, and a disjoint channel. We are currently trading in the disjoint channel. A disjoint channel has expanding edges which have same slopes locked in opposite directions.
We entered the Current Disjoint channel from a parallel channel trending upwards which is exactly what happened in the past, the only difference is size of these channels, in past we had larger Parallel and disjoint channel compared to what we have now.
The small size of channels this time indicates reduced volatility overall, which if it happens at the end of an uptrend, means we are topping out.
Let's make some predictions based on this.
If we look at the current price action, it is forming a bull flag (highlighted in the chart), I have also highlighted the measured move of the flag. If the flag plays out its measured move intersects directly into the top of the disjoint channel as well as the August high. Which I believe should be the top or close to it.
In case bull flag fails, and we first drop a bit then we can look at that the blue line, it is placed for 10th May CPI Day and if we move up on that day, we are still intersecting close to the August High and top of the disjoint channel.
Apart from the above structures we also have a harmonic structure with its PRZ falling right onto Aug high.
If you like my content then please boost and share this post. I have over 6 years of trading and investing experience and have learned a lot in this time. I like to share what I have learned. If you would like to learn from my experience then follow me on trading view to get notified on my trade, market projections and several upcoming technical analysis and in-depth tutorials on technical Indicators. You can also leave a comment and let me know if you want me to look at any specific asset or want to learn about any specific topic in the world of Technical Analysis. I Will do my best to create a post for it.
Keep learning and Happy trading All.
I have identified two different structures in the chart, a parallel channel, and a disjoint channel. We are currently trading in the disjoint channel. A disjoint channel has expanding edges which have same slopes locked in opposite directions.
We entered the Current Disjoint channel from a parallel channel trending upwards which is exactly what happened in the past, the only difference is size of these channels, in past we had larger Parallel and disjoint channel compared to what we have now.
The small size of channels this time indicates reduced volatility overall, which if it happens at the end of an uptrend, means we are topping out.
Let's make some predictions based on this.
If we look at the current price action, it is forming a bull flag (highlighted in the chart), I have also highlighted the measured move of the flag. If the flag plays out its measured move intersects directly into the top of the disjoint channel as well as the August high. Which I believe should be the top or close to it.
In case bull flag fails, and we first drop a bit then we can look at that the blue line, it is placed for 10th May CPI Day and if we move up on that day, we are still intersecting close to the August High and top of the disjoint channel.
Apart from the above structures we also have a harmonic structure with its PRZ falling right onto Aug high.
If you like my content then please boost and share this post. I have over 6 years of trading and investing experience and have learned a lot in this time. I like to share what I have learned. If you would like to learn from my experience then follow me on trading view to get notified on my trade, market projections and several upcoming technical analysis and in-depth tutorials on technical Indicators. You can also leave a comment and let me know if you want me to look at any specific asset or want to learn about any specific topic in the world of Technical Analysis. I Will do my best to create a post for it.
Keep learning and Happy trading All.
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