Cycle Trading

[Duma]

I think I am the wrong person for you to be asking for advice on shorting. It is not in my nature, and I really don't have much experience doing it.

But to try and answer your question you have to remember that the market just wants to go up. And because if this fact my charts I have noticed don't work well for inverse etfs. Dips in the market are usually not that large and very difficult to time. FNGU is up 500% since the end of 2021. I got to ask the question why would you even want to waste your time shorting.

However, market don't go up all the time and with what I think is coming, being able to short might be a good idea. My first rule is to not look at any inverse charts. They don't act like a non-inverse chart and reading them is going to take different rules in my opinion. If I am going to short, I only want to do it when the market is way over bought.

So what I am watching for all the time on my daily or my 60min chart is:
1. A major peak in M65
2. A clear w3 setup.

That did happen in July 2023, but their wasn't much gain to it and it was very choppy. If you are really set on shorting I would prefer a 60min chart for a quick in and out. Eventually a daily will give me some good signals.

So if I do get a short signal say from my QQQ chart, then I will short with SQQQ, but I never look at a chart. I will get my signals and set my stops based on TQQQ or QQQ chart.

Jaws does more shorting then me, maybe he can give you some pointers.