Hi! We have just reached the 13th bar of both sequential and combo on Tuesday. If one were to use this sequential to short the S&P500 then the question becomes "when do I enter the trade?" The riskiest trade would be on the close of bar 13.The associated stop level to use would be the level calculated with the highest true high of combo and sequential -1143.60, the horizontal dashed cyan line.
A more conservative entry technique would be to wait for the first price bar, subsequent to bar 13, which has a close lower than both the open and the previous day's close. We have not seen that yet. Still more conservative would be to wait for a TD Setup price flip.
Beyond the entry ..... should one take the short trade at all? This introduces the idea of using the higher time frame charts to filter the daily chart trades. I will take a look at the weekly chart in my next post.
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