SPY Institutions Taking The Other Side of Your Trade
This is a chart of the put to call ratio. The market is currently near an extreme of sellers to buyers indicating there will likely be a shift soon. If everyone is shorting the market, institutions are buying to stop out the shorts. They'll continue to do this until this strategy doesn't work anymore. Once sellers capitulate, they'll change their strategy to capitulate the bulls. They purchase data from brokers that show them where everyone's stop losses are and this is well documented. They see your stop loss, and their goal is to get it.
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The yellow zones are where the shorts have their stop losses. If this ends in a squeeze, it'll likely be after one of these zones.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.