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In response to : “Technical Analysis on Smoothed Moving Average (SMMA) indicator in the context of SPY day trading”

This asshat started tolling on my post (my perspective): https://www.reddit.com/r/wallstreetbets/comments/ni4vcu/i_spy_521_recap_and_524_outlook/

And then called me out in a post – without calling me out. https://www.reddit.com/r/wallstreetbets/comments/nir8an/technical_analysis_on_smoothed_moving_average/gz3yo7x/?context=3

So id just like to give my perspective on what I'm seeing on the charts. Its all in the eye of the beholder so take it as a grain of salt. This TA has helped me make money and, I believe, gives me an edge. But to each his own. If you are making money with your own method then congratulations. Not gonna poo all over you if it doesn't align with my method and strategies.

From the 5/21 read post

A few things in TA my notes:

  • called support and resistance levels.
  • Called small moves
  • Called that bulls need to break 418 and test 418 as support. As you can see we failed bulls.
  • But bears did not break 414.
  • Also called out a 20 SMMA test. Which we tested and failed.

screen grab from 5/21 post

From the spot gamma notes:

  • look at abs gamma strike and look what was said.

screen grab from 5/21 post

I'd like to address this chart and comment:

"Now please tell me which SMMA is acting as as support and which one as a resistance here? 60-day SMMA is definitely not a support because SPY was below that line half of the trading hours. 20-day SMMA is not a resistance because SPY was above that line for almost one third of the market hour."

To express what I see I'll provide my chart:

Let's go back to the 20th first.

  • 20 SMMA acted as support and was tested three times throughout the day on the 20th.
  • The 20 SMMA would have played as a great indicator to BTFD for Friday.

https://preview.redd.it/1dnhk0s0lr071.png?width=3400&format=png&auto=webp&s=9c0dc044b41db5df168ee01cf164486e120281a5

Now lets focus on friday:

  • Still have the 20 smma as support in the morning
  • broke through 418 with blow-off top but failed to establish support.
  • Tested 20 SMMA support at around 8 AM and failed but found support at top of gap (pretty common).
  • Tested 20 SMMA as support at 9 AM but failed
  • 20 SMMA now acted as resistance from about 9:15 – 11:30 (two fucking hours) Scalpers delight! Easily a 1x-3x bagger on an O'Hare.
  • As you can see we bounced off the 120 SMMA and found support.
  • The essentially consolidated for the rest of the day. "Consolidation is the term for a stock or security that is neither continuing nor reversing a larger price trend. Consolidated stocks typically trade within limited price ranges and offer relatively few trading opportunities until another pattern emerges."

https://preview.redd.it/7y89c2awqr071.png?width=3400&format=png&auto=webp&s=83d8c18d5dcf4bd08b12a1ac9e0cb00c0ee9d107

Taking this comment into account: "Now if you believe in these indicators and bought 0 DTE FD calls as a hope that 60-day SMMA will save you, you know what would happen."

Let's look at the RSI at the blow off top. If you started buying O'Hare calls here then you belong in this sub.

https://preview.redd.it/s2vvxf86vr071.png?width=3400&format=png&auto=webp&s=eca2606d4187b2ff947c6d1cfbd713101b2d9d01

TLDR – use basic ta for support and resistance. Use more than one indicator to confirm trends. Read my posts as conditional statements. If you have questions – ask – BUT don't be a dick. I provide bullish and bearish pt because like everyone else I don't know where the market is going to go in the future. SMMAs are a great tool but not good one used by themselves. Use them to determine strength of rends IMO. Use them for shorting and buying opportunities off of bounces and rejections.

Or just trade like this guy does with his "ears to the ground" and "eyes open"

Thanks for reading! Time for a drink!

NightMan

submitted by /u/jjd1226
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