CHART READING

This is how you can utilize Technical Analysis to understand charts

SPX 500 ANALYSIS

Used for holding on to portfolio positions spanning more then 7 days

SPX500 MONTHLY (LONG TERM TREND)

1. The opportunity to go long on the SPX500 post Lehman was on 011210 at 1217

2. There were 3 pullbacks in the past 14 years 031218, 020320 and 010622 (Supertrend Indicator)

3. All pullbacks did not result in a downtrend as price stayed above the ichimoku cloud month end

4. There were 3 resumption long positions on 011119, 011220 and 010224 (Supertrend Indicator)

5. Since 011210, the SPX500 has been on a bull run till 010224 (Price action stayed above the ichimoku cloud in green)

6. For the monthly uptrend to end, price must sink below the ichimoku cloud and stay below 3506 with the ichimoku cloud turning red

7. The latest long position was 5002.4 @ 010224 targeting all time highs with a stop at 4316.5 (Supertrend)

This chart gives you the longest term visibility of trend and sets the stage for our Multi Time Frame Analysis

SPX500 WEEKLY (MEDIUM TERM TREND)

1. Post Covid, Long signal was 3167 @ 010620 with a stop at 2540 (Supertrend)

2. The stop eventually got triggered at 4390 on 140222 with profits of 1222 points (38.5%)

3. The short position on 140222 at 4390 was stopped out on 200523 at 4253 with a small profit as prices managed to break above the ichimoku cloud on 290523 with a long signal confirming the continuation of the weekly uptrend

4. The weekly uptrend from 4253 continues to target all time highs with 1 pullback on 161023 that ended 071123

5. The latest Long position is 4595 on 071123 with a stop loss at 4776 (supertrend)

6. Note how the ichimoku cloud turns from red to green that gives you the trend direction

7. Also note how to go long when supertrend turns blue and short when the supertrend turns red. Stop loss is placed on the supertrend at the time of trade

This chart gives you an advance read on the Monthly/Longer term trend

SPX500 DAY (SHORT TERM TREND)

1. Most popular timeframe with most people
2. Note the methodology of taking the trade and how to place the stop loss
3. Note that your stop close can be triggered prematurely and the need to re-enter the trade
4. Note that we close trades ONLY when the stop loss is hit
5. Note that your profit is a function of the difference between your stop loss and your entry price

This is the suggested minimum timeframe to place your stops

SPX500 4 HOUR (TRADING TIMEFRAME)

1. This chart allows for earlier trade entries
2. Compared to the day charts which was long at 4324.5 on 031123 with a stop at 4150
3. This chart is long at 4193 (131.5 porints more) on 011123 (2 days earlier) with a stop at 4134 (wider stop)
4. Notice that the 4 hour charts have more trades but also means more stops being hit
5. Use 4 hour charts to take trades but put your stops on the day, week or month charts depending on how long you want to hold your position

This is your trading entry chart for better price action