Sunday, October 30, 2011

Trading Plan: S&P Measured moves can predict short targets and options

The first down swing on the S&P can give you a good idea where the next down swing will end, so simply measuring the range of the last downswing and substracting it from the high of the current down swing will give you a short target:
Often times the Call Options rally although the FDAX did not make
a new low, this can forecast that professional traders are trying to buy the market
-> looking forward for a trend reversal


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