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.
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Applying BigShort’s Indicators to Trade Profitably
Early Morning Rally Setup
After about 30 minutes of declining price, three large Momoflow (momo) bars pointing down act as an inverse indicator that price may start to rise. (bullish)
This is supported by the biggest spike of the day so far in call buying. (bullish)
Execution: Traders could have entered long positions at this confluence of signals taking profits at any time within the following 15 minutes until the large momo spike upwards shows up (bearish)
Midday Rally Setup
Over the course of the morning, price continued an aggressive downward trend until stabilizing for 30-40 minutes
Then price began to work upwards, crossing the MA20 and retesting it as support (bullish)
20 minutes later, price crosses VWAP (bullish)
This coincides with the largest Dark Pool of the day, appearing below the public price (bullish)
This confluence of indicators is further supported by NOFA trending up during that timeframe (bullish)
Execution: Traders could have entered long positions, confident in upward price movement supported by price action and BigShort indicators. With BigShort, traders could confidently ride this trade all the way up until a huge bronze sweep indicates bearish unusual options activity followed five minutes later by a massive NOF spike showing large put buying and call selling (bearish). This confluence of indicators perfectly calls the top of this run and shows BigShort users when to exit this trade.
Disclaimer:
The information provided in this article is for educational and informational purposes only and should not be considered as financial advice. BigShort does not provide personalized investment recommendations or advice, and you should not make any trading or investment decisions based solely on the content of this article. Trading in the stock market involves significant risk, including the potential loss of your entire investment. Past performance of our tools, indicators, or any referenced strategies does not guarantee future results. Always do your own research and consult with a qualified financial advisor before making investment decisions. Use of our platform and its features is at your own risk.