Shotgun Trade Setup(s): VIX/UVXY Analysis for Potential Reversal
In this analysis, we're eyeing a potential 'shotgun trade' scenario with a focus on VIX and UVXY.
If we observe a gap down in the market, especially in the VIX (VIX) and its inverse, UVXY (UVXY), it could signal a forthcoming move. Holding the gap down on UVXY might lead to a decline to $8.50, followed by a rally towards the confluence of a trend line and the short-term .618 retracement level, established based on the initial gap down.
The expected pattern involves a fakeout rise, followed by a subsequent fall in alignment with the VIX and broader market movement. This creates an opportunity for a 'shotgun trade,' where traders capitalize on the reversal by going long on the market or short on the VIX.
For those considering long positions in the market or short positions in the VIX, exercising patience and waiting for confirmation of the shotgun trade setup could be advantageous. Keep a close watch on the VIX's behavior and market sentiment for optimal timing."
Remember to perform your own analysis and risk management before executing any trades. Happy trading! 📈🔫
If we observe a gap down in the market, especially in the VIX (VIX) and its inverse, UVXY (UVXY), it could signal a forthcoming move. Holding the gap down on UVXY might lead to a decline to $8.50, followed by a rally towards the confluence of a trend line and the short-term .618 retracement level, established based on the initial gap down.
The expected pattern involves a fakeout rise, followed by a subsequent fall in alignment with the VIX and broader market movement. This creates an opportunity for a 'shotgun trade,' where traders capitalize on the reversal by going long on the market or short on the VIX.
For those considering long positions in the market or short positions in the VIX, exercising patience and waiting for confirmation of the shotgun trade setup could be advantageous. Keep a close watch on the VIX's behavior and market sentiment for optimal timing."
Remember to perform your own analysis and risk management before executing any trades. Happy trading! 📈🔫