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Planning Trades for Entry and Exit
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Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options Seminars are provided to you for educational purposes only. No information presented constitutes a recommendation to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. Pro Market Advisors do not offer or provide any opinion regarding the nature, potential, value, suitability or profitability of any particular investment or investment strategy, and you are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objections, risk tolerance and liquidity needs. For more information please visit our website: www.promarketadvisors.com
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TECHNICAL ANALYSIS Tools of Trading Goal: Identify special cause as quickly as possible, not predict the future Match the tool to the market Keep it simple but robust No two markets are ever the same; hone your judgment Like fertilizer, more is not always better
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SUPPORT is a price level where buying becomes stronger than selling and prices rise RESISTANCE is a price level where selling becomes stronger than buying and prices fall SUPPORT AND RESISTANCE Support and Resistance Defined
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TRADE CONDITION 1 Gap Fill Gap Gap defined Gap fill and reversal
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TRADE CONDITION 1 Gap Fill Gap fill and reversal Look for reversal candles at fill point Watch for volume confirmation Protect above fill point First target is the gap starting point
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TRADE CONDITION 2 Channel Breakout Breakout: any significant move outside an established trading range Channel
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TRADE CONDITION 2 Channel Breakout Breakout Closing price outside the channel Watch for volume confirmation Protect above channel support or below channel resistance First target is the channel width from breakout point (measured move) Use stop orders to protect entry price
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TRADE CONDITION 3 Role Reversal
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TRADE CONDITION 3 Role Reversal Wait for the price pivot Look for trend reversal candles Protect below role reversal support First target is the previous high Be prepared for multiple entries if price starts channeling
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TRADE CONDITION 4 Retracement lines for support and resistance Retracement lines from highs / lows Applied to multiple time frames Based on the Fibonacci sequence: 1, 2, 3, 5, 8, 13, 21… Retracements based on the Golden Ratio:.618, (1 -.618) =.382
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TRADE CONDITION 4 Retracement lines for support and resistance
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TRADE CONDITION 4 Retracement lines for support and resistance Retracement The key is choosing the correct high and low Tighten stops at each retracement price May trade breakout or reversal Watch for new high/low legs May be used for daily, weekly, monthly – weaker when used intraday
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TRADE CONDITION 5 Trend reversal candles 1. Uptrend 2. Resistance 3. Shooting Star 4. Confirmation
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TRADE CONDITION 5 Trend reversal candles Trend reversal candle Make sure it meets ALL requirements Wait for confirmation if required Protect above resistance Target is identified support or measured move Choose a few key candle patterns to start with
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Session 1: Technical vs. fundamental analysis, analyzing trends, top 6 candle patterns, moving averages, volume, RSI and MACD Session 2: Option building blocks, stocks vs. options, buying calls, buying puts Session 3: Income and hedging strategies, spreads and collars, protective put, covered call, buy/write, bull call spread examples Trading by Numbers: Determine trend and volatility, moving averages, linear regression, ATR and standard deviation, 7 keys for managing risk, 12 core option strategies, Bollinger Bands, Fibonacci, trading earnings and gaps, MACD and channels. ESSENTIAL OPTIONS VIDEO COURSE with Trading by Numbers $140
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Planning Trades for Entry and Exit
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