SPY weekend swing trade that gapped up to POC (call bought)

25 ene 2021

We saw that price was at a high volume node, and believed it could bounce up to two other high volume nodes (PT1 and PT2) and then the point of control as a PT3. Our price targets were PT1 = $376.84, PT2 = $377.90, PT3 = $378.95. We placed our stop loss where the most recent bearish candle tested at its lowest as a resistance ($373.67). There was a break in the Bollinger Bands (and bounce back from 200SMA) and higher volatility as the bands expanded (indicating a higher movement in price within this range). The RSI was seen as oversold and later in the trade it broke the 30 value again. There were red circles in the TTM squeeze indicating higher price volatility soon. We used this in conjunction with knowing the Bollinger Bands were expanding to know higher price volatility was coming. The TTM Squeeze also indicated the selling pressure losing gas with the darker purple bars. We entered at $375.29 and could've taken our profits at open over the weekend and after MLK Day on Tuesday ($378.52) or waited and taken at $378.95, where the price hit the POC on the dot.