Another solid day, kept it simple, just one trade on the personal account and done.
This one was a hidden bearish divergence on SPY, and it’s a setup I trade pretty often because it’s straightforward once you know what you’re looking for.
On the 4-minute chart, price made a lower high, while the TSI made a higher high. That’s textbook hidden bearish divergence, momentum pushing up, but price failing to confirm. When you see that, it usually tells you sellers are still in control and the bounce is likely corrective, not a real reversal.
I didn’t rush the entry. I waited for confirmation, once price rolled over and started moving back through VWAP and the 200 MA, that was my signal. Entered $694 SPY puts and managed it tight. Once it broke and followed through, it was a quick trade.
Nothing fancy here, just letting structure, momentum, and key levels line up. These are the types of trades I like most because the risk is clear and the move either happens quickly or it doesn’t.
Hopefully this helps someone who’s trying to understand divergences a bit better. They don’t need to be complicated, just focus on price vs momentum and wait for confirmation!
On to the next one. Let’s keep stacking ladies and gents 🍻