15 DAY TRADING RULES THAT WILL COMPLETELY CHANGE HOW YOU TRADE
1. Opening Range Breakout (ORB)
How SPY trades relative to the first 5-15 minutes sets the tone.
Above range = bullish continuation bias. Below = sell pressure.
2. VWAP Control
.Price above VWAP with higher lows = institutions accumulating.
.Below VWAP with failed retests = distribution.
3. Prior Day High / Low Reaction
These are liquidity magnets.
Break + hold = trend day.
Break + immediate rejection = fade setup.
4. Gap And Go vs Gap Fill
Gap up + strong volume = continuation.
Weak volume or rejection = fade to fill the gap
5. Trend Day vs Range Day Identification
Higher highs / higher lows all day = don't fade. Choppy overlapping candles = sell premium or mean reversion.
6. Key Moving Average Interaction (9/20/50/200)
Holding above = trend intact.
Loss + failed reclaim = directional shift.
7. SPY vs VIX Relationship
SPY up + VIX down = healthy rally.
SPY up + VIX flat/up = fake strength, caution.
8. Market Internals Confirmation
Watch:
Advance/Decline line
Tick (TICK
If price rises without internals confirming → weak move.
9. Liquidity Sweeps
SPY takes out highs/lows then immediately reverses.
That's stops getting harvested - reversal setups thrive here.
10. Time-of-Day Bias
9:30-10:30am: real direction forms
12-1:30pm: chop / theta burn
3-4pm: continuation or full reversal
11. Previous Week High / Low
Weekly levels overpower intraday noise.
Acceptance above = trend continuation.
Rejection = weekly fade.
12. Volume Expansion vs Divergence
Rising price + declining volume = weak move. Breakouts need volume or they fail.
13. Failed Breakout / Failed Breakdown
SPY breaks a key level and immediately snaps back.
These are some of the highest-probability reversals.
14. Options Expiration (OPEX) Effects
Price often pins near heavy open interest.
Expect chop early, directional move late.
15. Gamma Environment
Positive gamma = tight ranges, fades work.
Negative gamma = violent moves, momentum wins.