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.
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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.
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.