Real-time options education and strategies
Paul (1) The white line with the dot on each daily candle is the Half-Back (HB) line. That line is the mid-point (50% retracement) of the prior day’s range. When price is in a strong trend it’s very typical for price to find support (in an uptrend) or resistance (in a downtrend) near HB. Some overthrow … Read more
(1) I wouldn’t think to call this chart of FB bearish in any regard however today’s price action on the hourly chart (left) is concerning for the bulls. When price establishes a spike high (long upper wick and strong rejection), pulls back, and then grinds back up towards that high while price remains inside of … Read more
(1) Looking at the overnight action in /GC (Gold futures). Textbook price action so far this evening starting with the bullish reversal candle labeled #1. It was a relatively large candle with a long lower wick. That type of candle indicates that there was a change in sentiment where sellers had been in control but … Read more
(1) The opening range (first 30 minutes of the trading day) is frequently a time of price exploration where buyer’s and seller’s often set at least the high or low for the day. Sometimes the entire day’s range is set during the opening range. This morning’s price action in INTC saw price rise to within … Read more
Friday is the day I really focus on the daily and weekly charts. I want to make sure I’m aware of what the longer-term trends are on all of my longer-term positions. I’m not really concerned what the hourly trend is on a position that has an expiry 3-6 months or more out in the … Read more
(1) The overnight price action in /ES is clearly in a range with last week’s high being support at the bottom of the range. That’s good location for a long trade however a breakdown below that level could see a strong move lower. The other side of the coin is that a failed breakdown below … Read more
(1) Been tweeting about GLD over the last few days. Wanted to show this hourly chart from this morning where GLD found support within $.01 of where it should have! Now that price level becomes the key support for a bullish continuation. In other words, if the buyer’s are in control then price should not … Read more
(1) Posted this /ES chart on the twitter feed today (see tweet at the bottom of this post). Some textbook examples to help you with understanding price action. The chart was prior to the open of regular trading hours. This chart was from 4 hours after the open. Price broke-out above the 4455 bull/bear line … Read more
Last weekend I posted this analysis of the NFLX price action plus the chart below: 2021-08-15 Sunday: Over the past four weeks NFLX has squandered numerous opportunities to begin a longer-term rally based on a bullish setup. The lower band of a rising 8 SMA is a very good location for a long (bullish) trade. … Read more
The most basic definition of a trend is based on the high and low prices of an instrument. Above is the daily chart of MU but it could be any stock, ETF, index or commodity. Virtually all price charts exhibit the same patterns and behaviors! Let’s start at number 1 on the chart. As you … Read more