SPX 500 Strategy: Buy And Hold With A Small Risk
We all know that S&P500 experiences a strong bullish trend. How could we join?
The waves of m15 are plotted with orange lines. You may see a 3-wave bearish structure that was developing on July 21st. The lime line shows we are having the A wave down on H1 and it means H1 is providing a support for m15. Awesome Oscillator of H1 (AOx4 on m15 chart) also confirms this. So what could we expect further? There are 3 options:
- 4th correction up wave on m15 to be followed by 5th impulse down
- b correction subwave inside C down on m15
- new a wave up on m15
If we consider to buy, we have to look for a new wave up on m15 then wait for its respective b and jump into c. At the current moment there should be 2 main conditions:
- new a wave on m15 should be supported by its older chart that is H1 for m15
- this new a wave on m15 should break the blue dashed slope channel protecting the orange abc down on m15.
If we have a look at a smaller timeframe – m5 (drawn with blue lines) – we may see that the new wave up on m15 is composed of the 3-wave abc on m5.