SPY: Weekly Double Top at 780, Watching 750 for Confirmation
In-depth analysis of the trending trading setup: SPY: Weekly Double Top at 780, Watching 750 for Confirmation. Learn entry rules, stop loss placement, and risk management.
SPY: Weekly Double Top at 780, Watching 750 for Confirmation
Social media has been highlighting this trading setup. Here's a detailed breakdown of the core mechanics, separated from the hype.
Strategy Overview
SPY has tested the 780 area twice, in August and again this month, and both times sellers stepped in. That's a potential double top on the weekly. The latest push into 780 came with bearish RSI divergence, so momentum is fading even as price retests the high. The bigger uptrend is still intact: price is above the rising moving averages and the long-term trendline. That makes this a watch for confirmation, not a call that the top is in yet. 📉 Confirmation: a weekly close below 750, the Septembe
Key Trading Rules
- Entry: Look for clear reversal patterns (engulfing, pin bar) at key support/resistance levels
- Stop Loss: Always place behind structural swing high or low. Risk only 1-2% per trade
- Target: Next key level or minimum 1.5x your risk
Conclusion: While this strategy has strong momentum, execution requires discipline, emotional control, and strict risk management.