Price Action Trading – S&P 500 2 Bar Reversal | Jan 30th

Verified Profitable Trader

S&P 500
Today, the S&P 500 has finally started to show major cracks in the uptrend from the latest ramp-a-thon courtesy of the Fed. On the daily chart, the pair formed a 2 Bar Reversal Pattern on the Daily time frame (chart below).

2 bar reversal pattern price action jan 30th

You will also notice in the chart above how the major index has levitated above the 20ema which is quite unusual for such a prolonged period of time.

The 4hr chart below shows the force of the selling, which is shaping up to be a counter-trend impulsive move. It is also the first time since Jan 17th the index has a) closed below the 20ema while b) breaking below the prior role reversal level. Thus, at best, I’m suspecting a lower top on any rallies, and will look for price action signals to sell around 1503, targeting 1495 and 1487.

S&P 500 2 bar reversal price action trading jan 30th

If you want to learn to trade price action, learn rule based systems, get access to the traders forum, lifetime membership & more, visit my Price Action Course page here.

Make sure to check out my newest article 2 Tips for Placing Highly Effective Stops

Want More? My private members get all my trade ideas & market commentary 4x per week. Click here to become a member.

Related Article