$SPX All Time High? - Not Before A Drop (Smart Money Concept)
As a student of ICT, retail theory is not our thing. What I see that creates the current All time high is a liquidity run. It dips, creating a breaker, comes back up but doesn't get higher than the All time high. This is a signal for price to drop below a previous low. Which low is that? Depends on where the strongest breaker/order block is. Anyway, I was looking at this yesterday and noticed that the daily highs were all closer currently than previous days lows. So I had a feeling it would gravitate toward and break those current highs. It has done so. Next is the breaker. There are two. I believe it will actually hit the higher one but I'm placing the entry on the lower on just to be safe. To understand what I'm referring to, please see the chart here of the all time high price action here.
So, one of the breakers will be hit, and it will then drop to where I've placed my box. Why did I draw the fib at that point? Because the low of my fib is what creates the price action that breaks a daily and swing high. See chart here
After reaching a current high which should be near the breaker, price should retrace back to near the 70.5% level possibly the 79% level. So I have three take profit zones, one at 50% just in case it does only go 50% and turns around. At this point, you should have your stop loss at break even. It's also a bullish order block, shown here.
The second at the 62% retracement level. Which I think is a good level to shave off more profits. And the 3rd near the 70.5% level which happens to break somewhat equal lows, and if you know smart money theory, you know that's what price is attracted to, and also be at a buy-side breaker since the liquidity run is on the left side of the breaker and doesn't create a lower low forcing price higher. Which should then be the buy that could possibly break the high. It could possibly go lower too, in that case, I would probably take 95% of my pips off by TP 3 and leave a 5% trailer just to see what happens.
With it being the weekend of the presidential election being called. anything could happen. But just by going by smart money theory, this is what is likely to happen. We shall see.
So, one of the breakers will be hit, and it will then drop to where I've placed my box. Why did I draw the fib at that point? Because the low of my fib is what creates the price action that breaks a daily and swing high. See chart here
After reaching a current high which should be near the breaker, price should retrace back to near the 70.5% level possibly the 79% level. So I have three take profit zones, one at 50% just in case it does only go 50% and turns around. At this point, you should have your stop loss at break even. It's also a bullish order block, shown here.
The second at the 62% retracement level. Which I think is a good level to shave off more profits. And the 3rd near the 70.5% level which happens to break somewhat equal lows, and if you know smart money theory, you know that's what price is attracted to, and also be at a buy-side breaker since the liquidity run is on the left side of the breaker and doesn't create a lower low forcing price higher. Which should then be the buy that could possibly break the high. It could possibly go lower too, in that case, I would probably take 95% of my pips off by TP 3 and leave a 5% trailer just to see what happens.
With it being the weekend of the presidential election being called. anything could happen. But just by going by smart money theory, this is what is likely to happen. We shall see.
Trade closed: stop reached
Fail
You're either trading with Smart Money Theory or your just burning your money money. Believe me, I've been there.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
You're either trading with Smart Money Theory or your just burning your money money. Believe me, I've been there.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.