If you are a degen like myself, then this is what you want to see going into a lotto Friday for trading options. An inside bar on the daily.
What does it mean?
As you can see, 8/4 daily bar on $SPX is below the 8/3 high, and above the 8/3 low = inside bar
Inside Bar setups usually go one of two ways:
In a trending market, the indecision can signify a continuation pattern. Typically on an inside bar play, you should trade in the trend of the market, so we have been in a uptrend recently.
Breakout setup, in this consolidation setup, this could mean that it is signaling a reversal of the trend. This is especially important if it is at a key level of support or resistance.
I would play safe tomorrow, don't try to get in front of the move, but add your triggers to the high and low of the day today 8/4 for Friday 8/5.
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