🏓Ping Pong
Ping Pong Bing Bong is when price is going nowhere. Do not trade ping pong. Do not hope it will got your way.
Ping Pong Bing Bong is pretty easy.
This occurs when price action chops at 1-strike (never touching one higher or lower) or bounces between 2-strikes in a tight range.
Bounce between strikes:
Ping pong at 1-strike:
It's more important to recognize the two types:
All Day - When we ping pong the middle or entire session (typically on nightmare or hard mode)
ALL DAY IS THE WORST TIME TO TRADE DO NOT DO IT
Post Move (consolidation) - After a 3-strike move price action tends to ping pong
ALL DAY PING PONG
We don't want to take a trade until after 13:00.
Then we're looking for an end of day hulk or nuke into the close. We use small trade size "fun money" and know there's a high chance we will lose the trade.
Example: SPY 3/04/24 - has a hulk move that goes 285% in 1 hour before going to 0%. This is a great setup because you get 2 BULLS and 2 LOTTOS in a short timeframe.
SPY 2/14/24 - ping pong between 496 and 497 before end of day hulk move with 300% returns
POST MOVE PING PONG
After a 3-strike move, price action will typically ping pong before whatever happens next.
A lot of people call this consolidation.
Strategy:
Bias for a reversal or pullback: we "lean" that direction but we're not locked into the idea.
Prepare to chase the breakout: if price breaks one way or another chase it. Price may go in the direction of the first move.
Let's go through two examples:
SPY 2/16/24 - after a 3-strike move higher, ping pongs at 502 before going lower.
SPY 1/08/24 is totally different.
We get a 3-strike move from the open before ping pong between 471 and 472.
Then price breaks higher!
Summary:
Do not trade ping pong that's been happening the entire session.
Bias for reversal after a 3-strike move, but be prepared for price to break either direction
If you're confused about ping pong bing bong, just ask the discord!
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