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

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

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Buddhist, Trader and Philanthropist

I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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  • Amis

    Hello Chris,

    The 2 Bar Reversal Pattern you mentioned above,is it a BEARISH ENGULFING BAR pattern?? It looks to me as Piercing pattern(dark cloud cover).Am I right?