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.

Happy Trading,

Colibri Trader