😠Backtests like Backshots: A Quick Look at Dump Levels and Backtesting
My God, what have they done!
Writing this quick, but this news-fueled dump is a good chance to explain our view on the news and show how it can play out.
News itself doesn’t determine the Price Action or the market, but rather, it serves as a catalysts to speed up a coming move.
So where to for SPY? First you want to look for the obvious, the gaps.
The second thing you want to look for—and this is important—is skipped backtests on the HOURLY timeframe. This most often looks like hourly candles that pass through a weekly or monthly level without ever retesting it.
Here we see a couple of places where we skipped multiple backtests on the weekly in addition to the monthly. How do we know what to do?
YOU WAIT FOR THE FLAG SET OFF THE MONTHLY RIGHT HERE AT 546.9!
A close above means the green path is on for backtesting before a push down, the red means we go straight to 531 and you grab some 3DTE 535p SPY and chill.
How we use flow? TODAY IS A PERFECT DAY FOR THE YEET’S BAT FILTER, WHICH FINDS COUNTERTREND FLOW BY TOGGLING FOR THE OPPOSITE OF THE PRICE ACTION!
Yesterday’s BAT Filter Results:
