#TheStrat SPY Looking for an Outside Week #sss50percentruleThis post follows #TheStrat trading strategy. Google it for more info.
SPY is approaching the 50% level of last week’s candle and could be looking to form an outside week. The yellow lines are short targets.
SPY stopped out buyers, then stopped out the sellers, stopped out buyers again, and stopped out sellers again, forming this dark blue broadening formation.
Yesterday, buyers tried to push it out of the dark blue broadening formation and fill higher gaps, but it failed, which looks like a fake-out in the morning and a lot of selling afterwards throughout the rest of today.
SPY is currently looking like it could fill the gap to the downside and push this week under the low of last week, stopping out last week’s buyers and making this week an outside week.
This is especially more likely because we are in full-timeframe continuity to the downside, meaning all timeframes are currently a red candle, which indicates selling on all timeframes.
This theory is based off of the #sss50percentrule (made by SaraStratSniper), for example, when a candle goes 2-up, if it starts selling and passes the 50% level of the previous candle, it has a higher chance of becoming an outside week to the downside.
Educational purposes only, thank you for reading :)
