My two biggest factors to select an expiration are based on the following:
ATR - average true range, how much does the stock move on average over the prior 14 days? based on this how many days would it take for a selected strike to be ITM (in the money), select an expiration at least double to ensure it has plenty of time for turbulence.
Trend/cycle- does either the sector or ticker have a recurring pattern, and is it clearly in either a peak or trough? How long is a typical cycle? select an e...
ATR - average true range, how much does the stock move on average over the prior 14 days? based on this how many days would it take for a selected strike to be ITM (in the money), select an expiration at least double to ensure it has plenty of time for turbulence.
Trend/cycle- does either the sector or ticker have a recurring pattern, and is it clearly in either a peak or trough? How long is a typical cycle? select an e...
I find that when pairing nine with Volume and RSI11 it gives fairly reliable signals during the slower market hours. E.g. East Coast lunchtime.
Note here how the rising 9 ending at 12:30 has declining volume yet RSI continues to climb.
Similarly, the 13:00 falling 9 sees a volume spike and sudden decline as the RSI11 recovers from extremely oversold levels. This is also a great example showing that recovery doesn't always mean rebound back up, w...
Note here how the rising 9 ending at 12:30 has declining volume yet RSI continues to climb.
Similarly, the 13:00 falling 9 sees a volume spike and sudden decline as the RSI11 recovers from extremely oversold levels. This is also a great example showing that recovery doesn't always mean rebound back up, w...
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