🐂SPY - Bull Swing - 187.76% Gain - 9/14/2023

Profitable all the way, we breakdown a perfect SWING alert on 9/14/2023

When a swing alert fires, you pay attention and / or send the trade immediately!

This was a perfect trade.

From the moment you entered, you were in the money. At no point after did you experience a drawdown.

It does not get better than this!

Trade Walkthrough:

11:43 - 323 BULL SWING - for the $449 call option

SWING alerts are a type of mean reversion trade. They are designed to tag bullish trades after price has moved down or bearish trades after price has moved up.

At 11:43 you can see the price of SPY has moved down before this alert is triggered.

If the move lower were to continue, we would expect to see Bear (florbs and bombs). This does not happen.

We enter the trade.

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Evaluating Market Status:

Market status refers to all of the options bought that day for the underlying stock in this case SPY.

The setup is bullish with FR (florb ratio) at 0.7 and FS (florb score) at 4424.89. These colors will change from green to neutral to red.

FR and FS are both green.

This tells you that even as price has moved down, market participants are still buying call options.

Market status matching the alert; green + bull or red + bear is a strong indicator the trade will move in the same direction.

However on SWING trades, this may not always be the case.

There have been crazy reversals where market status is solidly bullish or bearish and then the market moves in the complete opposite direction.

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Checking the chart

Leading up to the 323 BULL SWING, you can see there's significantly more bullish activity (green florbs) than bearish.

Signals to take the trade:

• lots of green florbs as price is moving down

• no red florbs as we get to the time when the SWING alert fires

If SPY were going lower, the signals would be mixed (lots of red and green) or there would be consecutive BEAR bombs.

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Looking at the alert feed

We can also refer to the alert feed to see previous alerts.

Starting at 9:51 we see three bull bombs, one 835 bear and then a 2147 bull.

Scores over 500 are considered significant.

Since the BULL SWING fires at 11:43, the last bomb was the 2147 bull at 10:32. It's a good signal because 2147 is massive, but it would be better to see more BULL bombs grouped closer together.

What would make us hesitate on this trade is if the last three bombs were bearish.

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End Result and Summary

The 323 BULL SWING on SPY was a flawless trade, profitable with no drawdown.

The max gain was 187.76% and end of day returned 98.82%.

If every day and every trade was like this we would never have to work again.

Unfortunately... it's not!

For RIGD members you can check the chart and trade here.

Important: Past performance is not indicative of future results. This information is for informational purposes only and not financial advice. Trading 0DTE options carries extreme risk and will likely result in 100% loss of all trading capital.