Using the S&P500 to Confirm Momentum Correlates: $SPY/$BZUN Model Structures
In this video, we cover the following topics:
- Using volume and price action on the S&P500 to determine sentiment
- Geometric chart setups and major algorithmic support/resistance lines as buy and sell triggers
- How to trade [morning] momentum stocks using chart setup triggers on the $SPY to confirm trade entry confirmations
- Creating on-the-fly technical/algorithmic models and correlating price action in that equity against the market
Note that the above example runs into some problems with low-float stocks, with regards to the liquidity of some equity x. With highly liquid stocks, bullish/bearish correlates against the $SPY back-test well with @FREEDOMtheAlgo.
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