Every $SPDR S&P 500 ETF Trust(SPY)$ reversal pattern in trading has 4 things in common.
But, 99% of new traders have no idea what they are!
Here's what you need to memorize in 4 min 🧵
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4 items to memorize:
1. Reversals always happen at key areas where buyers are waiting (support or big demand zones)
2. Bears are getting weaker when LENGTH of candles are getting smaller.
3. Buyers always step into market (hammer candle)
4. Low selling on the way up!
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This lesson here will rapidly increase your accuracy 70%-80% (so save it)
On EVERY reversal play you have a choice to get in right at the bottom (hammer candle) or wait for buyers to step in on the NEXT candle.
Get in at #3 and #4 tells you move is strong with LOW selling.
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This is example #2. It will boost your confidence 100% once you know it.
As soon as the key level is broken at $600 on SPY Buyers will step into market (liquidity). Get in on the next GREEN candle and you see there is no selling volume. This move is strong to continue.
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