Market Stands Corrected, Again
Correct if wrong, but haven’t we seen this market before?
As in earlier this week?
A near 1,000 point drop Thursday sent the market back into correction territory and has opened up new opportunities for big, fast moves. This type of market movement usually only occurs over the course of weeks or months.
Traders can get in on the action in minutes or hours, if they’re prepared for trading shorter time frames.
The key is having the right charting tools backed by a proven strategy when the setups.
When the market spikes up and rips back down as it has been, a default trading strategy is to focus on the indexes. As these move, however irrationally, individual tickers will follow. Traders can translate index movement into stocks following the larger trend.
One of the most widely used chart indicators applied by Simply Trading moderators during this trading environment is the Squeeze Pro. It is an automated chart indicator that targets bigger and faster gains across time frames.
Simpler Trading moderators don’t need to catch a 200-point move in the S&Ps when they use this tool. The strategy is to get in a trade, get out with gains, and return to a cash position.
After resetting, the goal is to wait for the next alert from Squeeze Pro.
Then simply repeat the process based on how the indexes are moving.
We Saw: a sharp reversal in the market —
- A wild turn that produced trade opportunities
- Coronavirus fears rapidly turning to panic
- Pundits plowing through headlines, not charts
We’re Watching: … what opportunities lie ahead —
- Indexes and the direction they lead
- Any ticker showing strength in the trend
- Friday freakout or end of week rebound?
Discover more about trading volatile markets — learn how the “squeeze” guides traders.