How SPY Above/Below EMA Decides My Direction
My system trades in one direction at a time. Which direction depends entirely on SPY.
When SPY’s price is above the 10 EMA and the 20 EMA, and the 10 EMA is above the 20 EMA, the regime is bullish. The system takes long signals. When any of those conditions breaks, the regime shifts to bearish. No long signals. The account sits flat until conditions recover.
There is no halfway mode. No “maybe bullish.” The EMAs are either stacked or they are not. This removes the most dangerous decision a trader makes: whether to override the system because a setup looks tempting in a bad environment.
Why SPY? Because individual stocks can show strength while the broad market is weakening. A clean breakout in a bearish SPY regime has a lower probability of follow-through. The institutions driving volume and momentum are pulling back. The regime filter catches that before the trade happens.
The hardest part is doing nothing during bear regime. Signals still appear. Bases still form. The urge to trade does not disappear just because SPY drops below its moving averages. But the system’s job is to protect the account, not to entertain it. Sitting flat is an active decision, not a passive one.
Trade Like a Pirate ☠️
—
📢 Free weekly scan + trade updates: t.me/PiratosTrades
🔒 Full trade details: piratostrades.com/vip
📈 TradingView | 🏦 IBKR
