# The Blue Line Rule {% embed url="" %} When RIGGED fires an alert, the first thing you need to identify is whether you're at an advantage or disadvantage. This will keep you out of low probability trades. For being so important the concept is relatively simple. **BL = ****the change in price from the blue line.** **PS = ****the position score**** (a combination of the open, intraday high and intraday low).** Higher (more positive) values equal more risk for BULLS. Lower (more negative) values equal more risk for BEARS. That's it! If you can train your brain to understand that positive scores are more risk for BULLS and negative scores are more risk for BEARS, you can trade 0DTE options successfully. Let's look at an example from 3/12/24 on SPY. At the open price action moves down almost 3-strikes. The BEAR BOMB highlighted has PS -2.96, BL -1.56 and it returns $0.
The BULL BOMB highlighted has PS 8.45, BL 2.96. These values tell you immediately that we have moved higher from the open and also higher from the low (PS). There's a TON of risk that move continues higher, so we would skip the trade. *** ### Think about Risk First, Then Returns! Look at these bear bombs on [SPY 3/14/24](https://app.rigged.ai/flows/SPY?\&day=2024-03-14). They all fire near 3-strikes down from the blue line. These are high risk trades! We don't want to take them.
It's the same thing on these [BULLS on 2/09/24](https://app.rigged.ai/flows/SPY?\&day=2024-02-09) that make $0.
What do both of these have in common? For the BEARS, BL and PS are very negative. For the BULLS, BL and PS are very positive. They're high risk and are losing trades! *** ### SPY on 3/12/2024 is an excellent example of price action going both ways! We can't control the price action. Markets are going to market. However, what we can controls is knowing when we're at an advantage or disadvantage. **THIS IS HOW YOUR BRAIN NEEDS TO OPERATE.**
**Looking at it step by step:** Down 3-strikes = more risk the move continues lower so BEARS 🔴, BULLS 🟢. Return to the blue is neutral, anything could happen but the setup includes a BULL BOMB + green florbs both bullish. Up 3-strikes from the blue and 6 from the bottom = a massive move up. There's more risk we continue higher, BULLS 🔴, BEARS 🟢. 2 down from the high = more risk for bears (because we already moved down), but neutral for BULLS since we're still above the blue line. \ \ Approaching 4-strikes = BULLS 🔴 (because the average is 3-strikes) and ⚠️ for BEARS. [See the date on our website.](https://app.rigged.ai/flows/SPY?\&day=2024-03-12) *** ### Summary: Risk first and then returns: When RIGGED sends alerts we need to look at BL, PS as well as the strategy guide to see if we're at an advantage or disadvantage. If it's high risk (bears below 2-strikes and bulls above 2-strikes), then we can skip the trade, look for a better entry or go very small (fun money). The only time high risk alerts work is when there's high volume (over 120%) and the price action trends in one direction. This is where we see 4+ strikes in either direction. These days are rare. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.rigged.ai/strategy/the-blue-line-rule.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.