THE 4HR 200MA DUMP + A NEW ATH PRINTED AFTERWARDS
This data I have only pulled from about year back. I actually stumbled upon the information one day when I was doing a top down analysis on SPY.
Studying data at least from JUN of 2020 until now, using the 4hr chart in combination with the 200MA. I begin to notice a pattern that was occurring. The market seemed to dip in the 3rd week of every other month back to the 200MA.
The sell offs aren't really surprising being that market will always correct. What's unique is the "behavior pattern" that it/we showed quarter after quarter. We get sell off into the 200MA, it chops around, then by the 2nd week of the following month, we get a sentiment change and a bull run. The market historically has printed a new ATH every time.
This theory once again played out today as of OCT 25th 2021, SPY put in a new ATH. With this run starting roughly two weeks ago.
I timed it perfectly and made some nice profit over the last few weeks. My biggest trade actually was #PINS(Pinterest), I banked 497% on that play. I grabbed a 57.5 call with an entry at 53. price eventually broke out & pushed to $66.
Trades like that can happen, especially when the entire market is overall bullish. Moving forward, try to keep a mental clock of where we are during each month in comparison to where the market is trading. Could save you a headache or 3.
Studying data at least from JUN of 2020 until now, using the 4hr chart in combination with the 200MA. I begin to notice a pattern that was occurring. The market seemed to dip in the 3rd week of every other month back to the 200MA.
The sell offs aren't really surprising being that market will always correct. What's unique is the "behavior pattern" that it/we showed quarter after quarter. We get sell off into the 200MA, it chops around, then by the 2nd week of the following month, we get a sentiment change and a bull run. The market historically has printed a new ATH every time.
This theory once again played out today as of OCT 25th 2021, SPY put in a new ATH. With this run starting roughly two weeks ago.
I timed it perfectly and made some nice profit over the last few weeks. My biggest trade actually was #PINS(Pinterest), I banked 497% on that play. I grabbed a 57.5 call with an entry at 53. price eventually broke out & pushed to $66.
Trades like that can happen, especially when the entire market is overall bullish. Moving forward, try to keep a mental clock of where we are during each month in comparison to where the market is trading. Could save you a headache or 3.