I normally plot my trend lines on the 5 minute chart, then when looking for potential trade entries, I will look for reversals on the 1 minute chart. Here’s a great vid that taught me a lot about trend line trading! https://t.co/Cr5RWsTepk
Here are the 5 things I look for before entering a trade on $SPY 🧵
I normally plot my trend lines on the 5 minute chart, then when looking for potential trade entries, I will look for reversals on the 1 minute chart. Here’s a great vid that taught me a lot about trend line trading! https://t.co/Cr5RWsTepk
Next I look for a cross in the 9 and 21 EMA’s. Moving averages are commonly used as a tool for traders to identify key areas of support in an uptrend or downtrend. As a result, when the 9 EMA crosses the 21 EMA, this indicates a potential-
-reversal, alerting me of a possible trade entry. Remember there are other key components to my trading strategy that must be checked off before entering a trade! Here is a great video explaining this strategy: https://t.co/nD7DBfJVKS
This is one of the first tools and new ray trader should learn as it can be used with practically every trading strategy. In a nutshell, support is an area where a downtrend in price is expected to reverse and resistance is an area where-
-an uptrend in price is expected to reverse. I commonly use these areas with my strategy to add that extra layer of confluence. Here’s a video on supper and resistance! https://t.co/7ppP5SzqLU
The volume oscillator is a crucial tool used in my trading strategy as it confirms the validity of a reversal / trend. For example, if high volume is present in a downtrend that is considered a valid trend.
Meanwhile when low volume is present in the same trend, it’s considered in valid. I always make sure the reversal is a valid trend before entering my trades. Here is an article on using the volume oscillator: https://t.co/rTTpajuHlf
The final thing I look at before entering a trade is price action in the form of candlesticks. This is a vast topic so I’ll link a really detailed video that helped me understand this aspect of trading: https://t.co/zROBVmcu4G
Here’s a bonus strategy! I do not implement it into my day to day trades although when the opportunity presents itself, it’s definitely a very helpful tool. Here’s a video on supply and demand: https://t.co/g0I5Oqy17X @ShinobiSignals
More from All
Curated the best tweets from the best traders who are exceptional at managing strangles.
• Positional Strangles
• Intraday Strangles
• Position Sizing
• How to do Adjustments
• Plenty of Examples
• When to avoid
• Exit Criteria
How to sell Strangles in weekly expiry as explained by boss himself. @Mitesh_Engr
• When to sell
• How to do Adjustments
• Exit
1. Let's start option selling learning.
— Mitesh Patel (@Mitesh_Engr) February 10, 2019
Strangle selling. ( I am doing mostly in weekly Bank Nifty)
When to sell? When VIX is below 15
Assume spot is at 27500
Sell 27100 PE & 27900 CE
say premium for both 50-50
If bank nifty will move in narrow range u will get profit from both.
Beautiful explanation on positional option selling by @Mitesh_Engr
Sir on how to sell low premium strangles yourself without paying anyone. This is a free mini course in
Few are selling 20-25 Rs positional option selling course.
— Mitesh Patel (@Mitesh_Engr) November 3, 2019
Nothing big deal in that.
For selling weekly option just identify last week low and high.
Now from that low and high keep 1-1.5% distance from strike.
And sell option on both side.
1/n
1st Live example of managing a strangle by Mitesh Sir. @Mitesh_Engr
• Sold Strangles 20% cap used
• Added 20% cap more when in profit
• Booked profitable leg and rolled up
• Kept rolling up profitable leg
• Booked loss in calls
• Sold only
Sold 29200 put and 30500 call
— Mitesh Patel (@Mitesh_Engr) April 12, 2019
Used 20% capital@44 each
2nd example by @Mitesh_Engr Sir on converting a directional trade into strangles. Option Sellers can use this for consistent profit.
• Identified a reversal and sold puts
• Puts decayed a lot
• When achieved 2% profit through puts then sold
Already giving more than 2% return in a week. Now I will prefer to sell 32500 call at 74 to make it strangle in equal ratio.
— Mitesh Patel (@Mitesh_Engr) February 7, 2020
To all. This is free learning for you. How to play option to make consistent return.
Stay tuned and learn it here free of cost. https://t.co/7J7LC86oW0