# The 3-Strike Rule
The 3-Strike Rule says that for SPY and QQQ, price will go to maximum of 3-strikes above or below the blue line.
Once you get to the third strike; price will typically reverse.
The basic strategy is:
* Hold trades to BL +/- 3
* Risk off on trades at BL +/- 3
This works in \~ 80% of sessions.
If volume is over 120% (full send mode) as indicated by blue background, then we want to hold trades beyond BL +/- 3 and re-enter trades in that area.
RIGGED AI charts make this easy to see and understand.
BL +/- 3 to 5: YELLOW WARNING ZONE
BL +/- 5: RED DANGER EXTREME RISK ZONE
QQQ 11/01/24 is a perfect example.
Every time price got into the red extreme bull risk zone, it pulled back into the yellow.
That's the RIGGED system at work.
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### 3-Strike Reversals
Price action never goes straight up or straight down.
The 3-Strike Rule tells us that if price has moved to BL +/- 3 and it doesn't instantly continue to the next strike higher or lower, it's going to reverse the opposite way.
This is Wall Street killing retail traders late to the trade.
**3-STRIKE BOUNCE SPY on 10/21/24.**
The Blue Line is 583.88 and when price moves down to 581 (\~ 3-strikes), you can see it bounce and completely reverse.
**3-STRIKE REVERSAL QQQ on 10/11/24**
Here we have the opposite. Price moves up 3-strikes at the open and then reverses lower.
You can also see in the final hour price returns to 494 (3-strikes) and again pulls back.
{% hint style="info" %}
Exit to runners at 3-strikes, especially if price begins to stall out.
At the 3-strikes, price will typically bounce. If it doesn't nuke or pump through the third strike immediately, take your gains and run.
{% endhint %}
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## 3-STRIKE MAGNET
Sometimes the third strike can act like a magnet attracting price.
Whenever price gets into the red, it likes to return to the yellow which is the 3-strike zone also commonly referred to as the "fk zone".
Keep it simple...
If it says EXTREME BEAR RISK don't trade BEARS.
If it says EXTREME BULL RISK don't trade BULLS.
***
### FULL SEND - RE-ENTER TRADES IN THE YELLOW
RIGGED goes into full send mode when volume is over 120%. When option volume is that high, Wall Street is actively trading in the market and we want to copy them. This usually means it's a trend day.
Trend days we want to follow the price action and re-enter trades in the yellow zone.
[QQQ 10/15/24](https://app.rigged.ai/flow/QQQ?day=2024-10-15)
[SPY 10/31/24](https://app.rigged.ai/flow/SPY?day=2024-10-31)
[QQQ 11/01/24](https://app.rigged.ai/flow/QQQ?day=2024-11-01)
