HeatseekerPATTERN: The Whipsaw
Price trades in a wide range, the edges of which are defined by the presence of at least two high value nodes with few prominent nodes in between.
DESCRIPTION
Price trades in a wide range, the edges of which are defined by the presence of at least two high value nodes with few prominent nodes in between.
HOW TO APPROACH
A Whipsaw reads like a range: the edges are where the risk is easiest to define. The middle of the range is the least clear, and with 0DTE options, theta decay and unstable price action can erode premium quickly there.
Price is oscillating between the 6650 and 6675 strikes. (09/24/25)
Price is fluctuating in a loose range between 6545 and 6480. (09/09/25)
Price is oscillating between the 6480, 6460, and 6440 strikes. Note that in this example, there are four high value nodes of interest. (09/05/25)
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