A valued subscriber asked us about the pattern of buying the SPY at the close after 4 consecutive lows in the SPY then exiting the trade on the 1st up close in the SPY. This pattern has occurred 125 times in the SPY history and the average trade is a very respectable .62% profit. See performance report below.
Historically when the SPY was bought after 5 consecutive lower closes, then sold on the 1st up close would have made you money on 42 out of 47 trades a 89% win rate and the average trade was .95% return.
See performance report below
This is what the pattern looks like on a chart . Today was a low risk entry point for the market especially coupled with the fact that the 3 day RSI on NDX closed below 15 See the details of the Ripe QQQ pattern here
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4 comments:
This was only the 4th down day in a row for the SPY, no?
You are correct. I forgot how to count. Probably because I have the flu and Im taking the kids to Disney tomorrow.
Is this ninjatrader?
No. but I like the name.
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