SPY - Is Smart Money Playing Games? Don't Be Fooled!
Hello Traders, here is my analysis for the SPY.
Let me start by saying that currently I'm unsure as to what the SPY will do over the coming days... However, given what we've seen recently, I think that there is a relatively high probability that we see a scenario like the one I'm proposing will take place.
A scenario where:
1) Smart money takes price lower to grab liquidity and fool novice traders
2) A corrective rally to the upside will follow, back to the top of the descending trend line near $420
3) A large sell-off will occur breaking the range lows
Lets see how this plays out over the coming day's / weeks. In the meantime we can use this to guide us into taking positions at the right levels if this type of scenario plays out.
For example; Since I'm anticipating a scenario like this to take place, I'm starting to plan to take longs and shorts at key S&R levels.
1) I will consider taking a long on SPY through averaging in at various levels as price travels down from $390 (Since I'm anticipating a rally soon)
2) I will likely enter a short on the SPY when it reaches key resistance at $411, $420 and $429 since I'm anticipating a large sell off after at some point.
Thanks everyone and best of luck trading.
Let me start by saying that currently I'm unsure as to what the SPY will do over the coming days... However, given what we've seen recently, I think that there is a relatively high probability that we see a scenario like the one I'm proposing will take place.
A scenario where:
1) Smart money takes price lower to grab liquidity and fool novice traders
2) A corrective rally to the upside will follow, back to the top of the descending trend line near $420
3) A large sell-off will occur breaking the range lows
Lets see how this plays out over the coming day's / weeks. In the meantime we can use this to guide us into taking positions at the right levels if this type of scenario plays out.
For example; Since I'm anticipating a scenario like this to take place, I'm starting to plan to take longs and shorts at key S&R levels.
1) I will consider taking a long on SPY through averaging in at various levels as price travels down from $390 (Since I'm anticipating a rally soon)
2) I will likely enter a short on the SPY when it reaches key resistance at $411, $420 and $429 since I'm anticipating a large sell off after at some point.
Thanks everyone and best of luck trading.