Real-time options education and strategies
A short squeeze often seems to come out of nowhere but if you look at the price action preceding the squeeze you’ll usually see clues that it was about to occur. See the notations on the ES (S&P 500 futures) 60-minute chart below. As you can see, some of the important levels often reveal themselves … Read more
This is from the twitter feed today. Good lesson on price action!
(1) Yesterday’s daily candle in AMZN looked like a bearish reversal candle and many traders will have established a short position prior to the close. I view that candle as a potential bearish reversal and I won’t initiate a short unless price drops below yesterday’s low. If you look at enough charts you’ll see numerous … Read more
(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