Trap trading gets you out of making guesses that are not confirmed by price action .
Set your stops and wait for the market to rebound to consolidation or break out of it.
These snippits are from Barchart. Makes scanning for stocks that have high IV rank and are worth your time watching. I create a list of optionable stocks, they are usually more liquid and have...
These ties in with Gann analysis of time and price and implied volitility explosion.
We get to see how far ahead of time a price moves and trade the overextensions.
Perfect to use with Bollinger bands to find stalls and consolidation and monitior the mean reversion for Gamma exposure or pinning of options
When Mr Market gets crazy so do the odds and leverage ratio's in this study step falls to a 10 level on the 5 year screen , so anchor the long dollar risk amount which was 3.13 or so on the Zero price mark, then slide the middle bar down towards it until the amount of shares goes to a level 3100 or 10 x from where you start for shares.
Now assuming you have done...
I dumped all the default values and only use 5 of them: 0 .15865 .50 .84135 and 1.
now when you stretch this over any desired range you get some amazing insites to the upside or down side. example stocks always whiplash us out and do crossovers, so adjust fib tool such that the crossover range is lined up from 0 to .15865, in doing so you paint out the...
the chart for TLRY has yearly target of 3.88 and implied volatility of 66% which when measured from the dip to the target provides a reference for that dip that you can buy with greater confidence
the target for the year is 3.88 , if you measure the range from the dip to the target you get confirmation of you bottom, you won't be flushed if you use this format in conjunction with the risk reward profile for the yearly view timeframe to get your max shares. You can also increase your risk reward ratio should the price drop by adjusting the risk reward line...
