Dear Trading Idea Traders
The last couple of weeks were really profitable. Indeed, the ones of you that are subscribed to my website should have noticed that. In today’s newsletter I have shown that 70% of the trades from last month were winning trades. As I have told my subscribers, it doesn’t really matter what is your winning ratio. What is important is how long do you stick to a winning position. What else is important- how fast do you cut your losers. With that being said, I must say that with even 15% winning ratio a trader sticking to those rules could be profitable.
The trading idea that I am spotting today is coming from the S&P 500 index. In general I don’t trade this market, but for price action all markets are equal. Therefore, I believe that this trading idea might result into more profits. What I am seeing is a retracement of price to a previous support level- 2040. Today, the price action of this index is showing that the optimism is returning and more buyers are getting ready for new highs. Today’s daily candle is a bullish engulfing candle. It means that there are no more sellers that are willing to sell at those levels. There are a lot of buyers, who have pushed the price higher.
Today’s trading idea has the following parameters for a long entry:
Long trade at 2068 with a stop just under the nearest swing low at 2039. The primary price target is the level of 2096. The secondary price target is the major resistance level at 2120.