V reversal, if 289 could be Conquered quickly, plan to long
This is one of the images in my vision. I have provided another different image of Elliott waves. see attached link.
In this image, SPY might be a "V" reversal pattern. See left 3 samples in SPY daily chart: Dec. 2018; Jun. 2019; Oct. 2019;
SMA200 will become support once the price is above it.
"V" reversal is one kind very strong trending pattern. In all these 3 samples, "V" pattern created new higher high.
In such kind quick and big move, how to join the trend with low risk? Here is an ideal plan:
Condition:
1. SPY must go above 289 quickly, The high point marked as "B"
2. and down below 287; the low point marked as "C"
3. and go up again
Confirmation Entry: Stop buy about 288-290 (B-C)/4+C
Stop: about 284 ($1 below C)
Target: 312;
buy at 288: Risk/reward=1:6
buy at 290: Risk/reward=1:3.7
if Gap up above 290, let it go, don't chase. Risk/reward >= 1:3 is the minimum request in a trading plan.
In this image, SPY might be a "V" reversal pattern. See left 3 samples in SPY daily chart: Dec. 2018; Jun. 2019; Oct. 2019;
SMA200 will become support once the price is above it.
"V" reversal is one kind very strong trending pattern. In all these 3 samples, "V" pattern created new higher high.
In such kind quick and big move, how to join the trend with low risk? Here is an ideal plan:
Condition:
1. SPY must go above 289 quickly, The high point marked as "B"
2. and down below 287; the low point marked as "C"
3. and go up again
Confirmation Entry: Stop buy about 288-290 (B-C)/4+C
Stop: about 284 ($1 below C)
Target: 312;
buy at 288: Risk/reward=1:6
buy at 290: Risk/reward=1:3.7
if Gap up above 290, let it go, don't chase. Risk/reward >= 1:3 is the minimum request in a trading plan.
Order cancelled:
SPY Gap down to Lower low - 242.
