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Tae's Corner: SPY - Sept. 20, 2024

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

The setup discussed below is SPY on the FastFlow tab of BigShort's v1 interface (in today's app: the main chart with FastFlow enabled) and was shared on the Discord on September 20th 2024.

The screenshots below were captured in BigShort's v1 interface; the setup and mechanics they show are unchanged in today's app.

A busy BigShort v1 chart of SPY with orange handwritten annotations labeling bearish Dark Pools and shadow bars, a "canary" marker, and bullish shadow bars, plus circled shadow-bar clusters in the lower panes

This is a busy day, full of insights, so let's break them down into less-daunting, clearer chunks, for analysis.

Momo "Shadow" Bars Were Predictive: Below, we've isolated just the Shadow Bars and the price impact so it's easier to see. As you can see, there were four main times where Shadow Bars were predictive. Three were bearish (red ovals, below) and one was bullish (yellow oval, below)

The isolated Shadow Bars pane, with three red down-arrows over bearish shadow-bar clusters circled in red and one orange up-arrow over a bullish cluster circled in orange

Even More Predictive Combined with Dark Pools : When you add the Dark Pool action to our isolated image, its gets even clearer how predictive BigShort's indicators are. Note how the Dark Pools (below, blue ovals) add more information and confidence to the short positions, in some cases giving even more advanced warning or connecting a longer trade.

The same isolated chart with blue ovals highlighting grey Dark Pool circles above the price on the left and right, and red ovals around shadow-bar clusters in the pane below

Counter Signals Cancel Out : At BigShort we always recommend looking for agreement or "confluence" among signals. Here's an example of why that matters.

Note how the obvious bearish shadow bars (red oval, below) were preceded by a giant bullish Net Options Flow put-selling pyramid (purple oval, below).

A zoomed chart with a dark band highlighting a price dip and rebound, a red oval around green shadow bars, and a purple oval around a bullish Net Options Flow put-selling pyramid in the lowest pane

Having just seen an outsized bullish signal moments before, these bearish shadow bars were less trustworthy and, as you can see, didn't lead to downward price movement. Waiting for agreement among multiple indicators increases trading consistency and profitability.

Stay Tuned for More From Tae: As you see outlined above, Tae's play-by-plays in the BigShort Discord community help new and experienced BigShort traders alike understand how to read the institutional flows to increase profit and avoid loss.

We encourage all traders to lurk (or participate!) in the Discord to increase your skills at the fastest possible rate and build consistency in your trading with BigShort institutional insights data.