The idea here is that we may continue to go short in the beginning of the day and at some point we will see a reversal.
Preparing for a potential intra-day reversal after seeing how SPY opened yesterday (1/18/23) at the top 20% of the day and closed at the bottom 20% of the day. According to Connor and Raschke on this 80-20 strategy the probability of a reversal is between 80-90%. So to manage risk, it may be worth entering a long entry if it rises back to yesterday's low and put a loss stop at today's low.
Preparing for a potential intra-day reversal after seeing how SPY opened yesterday (1/18/23) at the top 20% of the day and closed at the bottom 20% of the day. According to Connor and Raschke on this 80-20 strategy the probability of a reversal is between 80-90%. So to manage risk, it may be worth entering a long entry if it rises back to yesterday's low and put a loss stop at today's low.
Comment:
The 80-20 strategy worked but it took 2 days to execute, a buy at the 391 and sell at the support of 393.