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KAM TradingWhat the SPX indicator does
The SPX indicator is a technical-analysis tool that runs on your own TradingView account and is built on price action. Its job is to give you a clear entry signal on the chart — a call (expecting the market to rise) or a put (expecting it to fall) — and to automatically draw a stop loss and three profit targets alongside it: TP1, TP2, and TP3. It works on the S&P 500 index, the SPY fund, and US stocks.
The idea is that everything appears in one place: where to enter, where the stop sits, and where the targets are. The signal is a tool to structure your decision, not a guaranteed outcome — so it is wise to wait for the candle to close before acting on a signal, and to confirm the broader market direction first.
Managing the trade with the 80/10/10 approach
The most important part after entry is managing the trade — this is where you either walk away with a locked-in profit or give it back. The 80/10/10 approach keeps it simple: close most of your position early, and let a small part ride if the move continues.
- 80% at TP1: as soon as the first target is reached, you exit the largest portion — locking in most of the profit and reducing your exposure to a reversal.
- 10% at TP2: a further trim if the market keeps moving your way.
- 10% at TP3 or beyond: sell the last piece at the third target, or let it ride if price pushes past TP3.
One rule sits above everything: if price hits the stop loss, exit fully without hesitation. A small, disciplined loss is far kinder than a full one. Not every target is always reached, and this approach helps you act on a plan instead of emotion.
Choosing the right contract
The SPX indicator can show a suggested strike table on the chart for both a call and a put contract. Take the number from the table, open the indicator settings (Inputs), and enter it in the call or put field. After that, a few things help you pick a contract that fits:
- Close to the current price: a strike near the price moves faster with the market.
- Enough liquidity: choose a contract with real volume so you can get in and out easily.
- Sized for your account: do not enter with a contract that costs more than you can comfortably carry.
- Mind time decay: a contract loses value as each day passes, so short-dated contracts are highly sensitive to time.
Contracts are a high-risk instrument by nature — never enter with money you cannot afford to lose, and do not size up just because a signal looks strong.
Timeframes: which one fits you
The SPX indicator works across different timeframes, and each has its own character and speed:
- 1 minute: very fast with many signals — for experienced traders watching moment to moment.
- 5 minutes: the most widely used and a good balance — a sensible starting point if you are new.
- 15 minutes: fewer but calmer signals, suited to slightly longer trades.
The lower the timeframe, the more signals you get — along with more noise and speed. If you are new, start on the 5-minute chart and adjust from there. Pick a timeframe that fits your available time, your temperament, and your trading style.
Want to see how the SPX indicator works in full — signals, targets, trade management, and contract selection step by step? Open the SPX indicator page here, where you can try the interactive demo and view the subscription and pricing details.
Disclaimer: This content is educational only and is not financial advice or a recommendation to buy or sell; trading carries real risk, and the decision and full responsibility are yours alone.