🏓Ping Pong

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)

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