Trading The MOO (Active Psychology Part 2 (For Followers))

Good morning everyone! Thank you so much for your support from my previous article where I showed my trade on the open and the psychology behind not being greedy, remaining grateful, and charting into the open for a position.

I am going to try to write this as briefly and quickly as possible.

SPY Daily

There was an upside gap from $520.57 to $522.25. SPY filled that gap yesterday and today.

SPY 4 Hour

We saw the possible bull flag yesterday and we were looking to enter at the possible Retest and Rejection level. A really great setup leading into today. However, we are right where a lot of sellers have placed limit orders trying to predict another downside move (aka, selling buyer liquidity, buying seller liquidity, or just sellers).

SPY 1 Hour

I also saw the possible bear flag on the 1 hour yesterday. That played out amazing right into the bull flag on the 4 hour.

SPY 5 Minute

We are currently trending upwards with selling and buying liquidity equidistant from eachother. Similar to yesterday.

Two possible ideas here:

We sell back down to buyers on open and find support for the upside

We shoot straight up to liquidity and find resistance for the downside

The idea is that we sell down to the buying liquidity on the 1 Minute for support for the upside. This might not play out, but it depends on how close we get to the level before the MOO.

If the price wicks into the level, I may go long. Of course there will be other pieces of information I want to look at, such as the VWAP there around the buying liquidity. The SPY might reach VWAP before or on the MOO where the buyers are for more upside.

It should be said that this is not financial advice. These are my thoughts heading into the open. Trade at your own risk, do your own research, assess your own finances and consult with your personal financial advisor before entering a trade.

Thank you for all the support, and for the 1000 Follower special I will include everything I look at when trading the MOO. I hope you all have a great day in the market