Some traders use complex indicators or formulas to trade. I don’t.
All those indicators and lines makes it very difficult to take objective decisions. Why try to complicate things that are already complex?
Anyway… The clearest index to trade is the SP500. Seriously.
I use simple support & resistance analysis to get to my conclusions… and that’s what I’m going to show you here.
First, look at the weekly chart:
It looks as if it is trading near an important long term resistance level right?
Sure it does…
But there is something else that we need to analyze. Every single time the SP500 gets close to an important level, it tends to range. Here are these ranges:
On this chart, you can clearly see every single time its near a LT level, it will range…
Once the market breaks through those ranges, the market continues to move in that direction, until it hits the next level…
We can confirm the SP500 already broke through that range on the shorter time frames, such as the hourly chart:
As you can see, it already broke through the resistance level, which means that we are already in a bullish condition.
By the way, we are trading at historical highs.
Let me know what you think on the comment section.