Real-time options education and strategies
Today is Fed Day! Hooray! 🙄 (1) I’ve mentioned in the past how the 8 SMA can not only be used for identifying trend (upward or downward sloping) and trade location (long at rising lower band, short at declining upper band) but it can also be used for timing purposes. See SPX example below. If … Read more
(1) /ES just prior to the regular hour’s open. Price is failing to find support at the rising 8-hour SMA lower band. It should find support there if buyer’s are strong. Support also in the 4347-55 area where yesterday’s HB and last week’s low are located. Dropping below 4347 would be bearish and would next … Read more
Very important concept tweeted by Steve Burns and validated by the ‘Horse’. They both know what they’re talking about. Sounds good in theory but how do you do that? That’s what this post is about. Read it, understand it, trade it. Ask questions if you don’t get it! Step 1: Wait for a setup that … Read more
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