From feb 17 2021 to today morning we can see a down move based on the Cycle momemtum indicator the correction(dip) aprox between 2% or 3%, the option spread hold between the correct range until the expiration date giving us a sucessful trade at the end. Now we can start thinking in the next trade as we are at the bottom of the cycle. Buy the dip!
This is another posistion based not in new or in any other indicator but only the cycles of the market, at this moment we can see that the momentum indicator is in the over sold and today we have a down move a very little down move, the implied vol was up a little bit so in order to obtain quick gains until the end of Feb the option spread si ready for 5% buffer...
The three cyclic indicatods Cyclic RSI is showing the same pattern or position in the oversold zone. Even though there are 3 periods 50,100 and 200 periods all are in the oversold zone. We can expect a down move in the incoming days or weeks, but who knows. Position closed until the implied volatify is high again for another entry.
Option spread porfit % was reached, cycle indicator is near the oversold zone and also the rest of the cyclic indicators with different periods are shwoing the same, we can affront a down move and high inmplied volatify for other entry in the incoming days or weeks. VIX and /VX can get up move.
Today 20-1-2021 I can see a divergence in all the cycle indicators and the momentum indicators. We will in the next few days if this can be true. The oscillator is from whentotrade, the reversal points are two indicators developed by me.
The squares that you see are the buffer if the market goes up, down, or sideways does not matter because with the options spread strategy only time and theta decay give you the daily income until expritation date.
Two indicators I created based in the possible reversal points and a special feature to create a forecast for the incoming days with different bias neutral, bullish and bearish. This is just for demonstrate purposes.