🔺Trend Day
Trend days are by far the most profitable days to trade.
These sessions are rare ~ 15%.
These sessions are by far the most profitable.
Trend Day:
✅ Price moves 3+ strikes in one direction
✅ Price closes in the same direction as the initial move
✅ Swings (reversals) against the move are short 1 or 2 strikes max
Trend Day Strategy:
✅ Follow price action (BULLS +PS, BEARS -PS)
✅ Hold majority of the position beyond 3-strikes
✅ Trade 1 or 2 strike OTM options
❌ Avoid swings (reversals) unless BULLS PS -10 or BEARS PS +10 for 0DTE or 5 strikes for stocks
BULL TREND DAYS
These are the best sessions. Price goes up and then it stops going up and you think it’s all over it’s going to revert because you have too much mental and emotional damage from low volume sessions, then it just keeps going up. You sell 100% alerts that go 400%.
SPY BULL TREND 01/08/2024
Second, the price action either does one or two things:
Trend day - price action moves one way the entire session
Perfect tags - price action is volatile with BEARS at tops and BULLS at bottoms
You can have a trend day with perfect tags or a perfect tag day with volatile price action. Additionally anytime Jerome Powell speaks during market hours, there is insane tradeability.
Even if we only look at the first few hours of the session, it's very clear to see when comparing 2/02/24 on SPY and 2/28/24.
BULL TREND DAYS
These are the best sessions. Price goes up and then it stops going up and you think it’s all over it’s going to revert because you have too much mental and emotional damage from low volume sessions, then it just keeps going up. You sell 100% alerts that go 400%.
Case Study: SPY BULL TREND 01/08/2024
Insane session... seriously one of the absolutely best ever. You go almost six strikes straight up, no pullbacks at all. Here are the numbers: 2 contracts of the top three alerts (the bouncing bulls on the flow page): Investment: $344 DHR: +$2,973 (held until the end of the session) GME: +2,997 (sold perfectly at the top) That's a 770% return!!! In one day!!! When DHR (diamond hand return) and GME (god mode exit) are similar values, it tells you it was an easy session to trade. See it on our app: https://app.rigged.ai/flows/SPY?day=2024-01-08
Case Study: SPY BULL TREND 02/02/2024
One of those rare sessions where price just kept going up. The bears tried to take it down around 1300 and got absolutely demolished. Almost 7-strikes from the open until 1530. Incredible!
Here are the numbers: 2 contracts of the top three alerts (the bouncing bulls on the flow page): Investment: $594 DHR: +$2,198 (held until the end of the session) GME: +2,566 (sold perfectly at the top) Percentage Gain: +430%
https://app.rigged.ai/flows/spy?day=2024-02-02
https://app.rigged.ai/flows/qqq?day=2024-01-19
QQQ: https://app.rigged.ai/flows/QQQ?day=2024-01-08
NVDA:
https://app.rigged.ai/flows/NVDA?&day=2024-01-19 https://app.rigged.ai/flows/NVDA?&day=2024-03-01 AMD: https://app.rigged.ai/flows/amd?day=2024-02-29
BEAR TREND DAYS
Generally it's harder to trade bear trend days than bull trend. This is because humans and the stock market are wired to go up. The best indicator this will happen is that volume is over 120% and the bounces at 2 or 3-strikes down fail. The most epic bear trend day ever was 12/20/23. We're not sure if it's worth studying because it's the only time we've seen something like that happen. https://app.rigged.ai/flows/spy?&day=2023-12-20 https://app.rigged.ai/flows/qqq?&day=2023-12-20
SPY: https://app.rigged.ai/flows/spy?day=2024-01-24 QQQ:
https://app.rigged.ai/flows/qqq?day=2024-03-05 JPOW event:
https://app.rigged.ai/flows/spy?day=2024-01-31
Note: This is being written on March 19, 2024. There really haven't been very many bear trend days this year. Bull market = bull trend days. Bear market = bear trend days.
PERFECT TAG TRADEABILITY
There are sessions where tradeability is high, but we don't get a trend day. It's instead more like mean reversion where it goes up and comes down or goes down and comes back up. The only difference is that instead of reversing at 1 or 2 strikes, we go beyond 3.
Remember tradeability (high volume) we expect to go beyond 3-strikes in either direction.
Overall these sessions are more difficult to trade than a regular trend day, but still insanely profitable.
SPY: https://app.rigged.ai/flows/SPY?day=2024-01-24
https://app.rigged.ai/flows/spy?day=2024-02-13 https://app.rigged.ai/flows/spy?day=2024-02-16
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