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Tae's Corner: SPY - Nov 20, 2024

In Tae's corner, we share small snapshots of advice and wisdom from BigShort's founder, Tae, that he often shares in the Tutoring channel of our Discord community.

The screenshot below was captured in BigShort's v1 interface; the setup and mechanics it shows are unchanged in today's app.

A BigShort v1 chart of SPY on November 20, 2024, with a purple handwritten note about traders expecting a double bottom, a readout panel listing SmartFlow, MomoFlow, NOFA, Bollinger Band and VWAP values, and Smart and Momo dials in the top corner

click the image for a bigger view

Applying BigShort's Indicators to Trade Profitably​

Midday Short​

  • Traders paying attention to price action (like they should be) saw a classic double bottom pattern over the course of the morning and their bullish TA was telling them to make a long play.

  • But BigShort users knew better.

  • Bearish Dark Pools (DPs) had been appearing throughout the morning. Remember, when DPs appear above the public price, they usually act as resistance and often push the price down (bearish)

  • Net Option Flow Accumulation (NOFA) had also been steadily decreasing all morning (bearish).

  • Then the large NOF spike of put buying starting at noon created confluence with the DPs that price is not likely to continue rising (bearish).

  • Execution: Traders could have, at the very least, protected their capital by avoiding a long play based on the TA. Even better, BigShort users could be confident in a midday short play based on the indicators and made money where others were getting wrecked.

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