A couple of newbie questions about RS/RW, SPY, and algo lines
Hi there. Firstly I want to say that this subreddit has been instrumental in improving my trading results. I've been active trading for a few months now and nowhere else have I found strategies that are as systematic and promising as the ones here. However, through reading the wiki and some of the posts here, there are still a couple of gaps in understanding that I haven't been able to fill, so I'm hoping someone will be kind enough to clarify a few things.
Also I couldn't find any rules for posting here so please remove this if I'm breaking any.
1) I understand the huge importance of gauging SPY prior to trading. If we look at the daily chart, it's pretty obvious that SPY has been in a downtrend, but where it gets hazy for me is gauging SPY intraday. At what point on the intraday (M5 chart for example) can you confidently conclude SPY's direction? If you look at SPY's M5 for yesterday, 5/12/22, you can see that from 0830-1105, SPY appeared to be on an uptrend, but then reversed from 1110-1455 before rallying again in the last hour. If you had taken a long trade at around 1105 thinking SPY is green for the day, you could have been burned. So what would you have done yesterday?
2) I've also understood that RS and RW to the SPY is critical as well. Given that correctly gauging SPY direction and RS/RW seem to make the biggest difference in win rate, would there be any reason to just trade leveraged SPY ETFs such as SDS or SSO? These are pretty much guaranteed to be either strong or weak against SPY depending which way it's trading, and it would take some of the guess work out of it.
3) Algo lines - something that gets mentioned a ton here so it's clearly very important for technical confirmation of movement. From what I've read, I understand that algo lines are those that a machine algorithm would typically draw, but because we retail don't have access to those, we have to draw them in manually. But the closest that I've found for how to draw these is Hari's video, but even then I couldn't follow the reasoning behind some of the lines he was putting down. Does anyone have a more comprehensive set of guidelines for algo lines?
4) Has anyone found consistent success swing trading with these methods? Like instead of framing with D1 and trading on the M5, perhaps framing with a weekly chart and trading on the daily or hourly? I only ask because I (and I'm sure many of you) work full time and will have periods during the day when we can't monitor the charts and might miss entry/exit points. So perhaps swinging would be more forgiving?
I know this was a lot so I appreciate any tips from any of you!