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SPX Resistance Zone - It's not About Being Right or Wrong

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Direct from the desk of Dane Williams.



Monday morning in Asia, let's do this.

You would have noticed that we've been one of the many day traders still searching for that SPX short opportunity.

But like everyone else, our SPX shorts off higher time frame support/resistance just isn't seeing any sort of sustained momentum.

You can see that price is back to our daily zone on the updated chart below.

SPX Daily:

The thing is that this daily zone is so subjective, even as fat as I've drawn it on that chart there.

Just look to the left of that chart and how wide the price action chop through this zone has been - You could literally have drawn your zone anywhere.

This makes me think of an old saying that traders like to pull out of the bag from time to time:

"It's not about being right, it's about how much money you make."

It fits perfectly into this situation because who cares if our zone is drawn in the right place, the only thing that matters is that we can use it to manage our risk around.

We made money off the zone the last time SPX rejected resistance, now we wait to see how intraday price action reacts around it and whether we'll get another chance.

If the higher time frame zone holds, then we'll once again zoom into an intraday chart and look for areas of short term support turned resistance to enter short off.

By doing this, we make sure we're trading in the direction of the higher time frame chart and are able to get excellent risk:reward on our entries.

Best of probabilities to you,

Dane.



FOREXBROKR | Hive Blog Higher time frame market analysis.

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