Using Relative Strength to Find Day Trading Opportunities

The key to day trading options is following institutional buyers, this can be done by watching unusual options order flow paying for bloomgberg terminal to bypass the 15 minute delay, which cost serious money to gain this edge.

The ways for retail traders to measure institutional buyers without a bloomberg terminal can be done with supply & demand zones where institutions have acted before, but more importantly relative strength vs the market.

SPY dumped, FSLR did not, has high relative strength for the day.

This is what a chart looks like for day trading, there's no lagging indicators. It's the relative strength and SPY overlay. When SPY dumped today this FSLR did not, it has relative strength for the day. It's not moving like 75% of stocks with the market, it's not at the market's mercy.

This means institutional buyers are buying this ticker without caring the price today. My goal is to see when SPY is near a bottom, using the market to chart trends and & bottoms, trading the stocks with high relative strength for the day. (This means they'll gain more upside movement than the market and receive less downside movement than the market. Boosts upside, negates downside.)

Same set-up. When SPY finds bottom, time to buy the ticker.

I did not find FSLR, it was called out today by Trade Alert on Twitter. Yesterday, they called out AVGO which was same set-up. SPY dumps, AVGO did not, it has high/rising relative strength for the day seen in green bottom chart. After SPY finds a bottom and starts to rebound, time to buy AVGO. While SPY recovers 0.8%, AVGO moves 3%. Today while SPY recovers 2%, FSLR runs 6%. So use the market to trend, find bottoms, trade the tickers with high relative strength.