TRADE - swing puts - Major divergence between price and RSI
Line charts help to clear the noise of candles, and here you can easily see higher highs on AAPL daily chart with downsloping RSI.
There may be selling into the close today (profits before 3-day weekend) if you want a day trade, or you can open 2/28 or 3/20 puts, strike between 320-310.
There may be selling into the close today (profits before 3-day weekend) if you want a day trade, or you can open 2/28 or 3/20 puts, strike between 320-310.
Note
Wanted to add, when trading divergence, make sure you have stop losses set because divergence signals may not always be followed by much of a countertrend move. Also be ready to take profits; while divergence can lead to a great options trades when a stock pulls back, the countertrend move can quickly reverse if buyers/sellers are waiting to buy/sell stock.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.