O'Reilly logo

Day Trading Options by Jeff Augen

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 4. Working with Intraday Price Spike Charts

Key Concepts

  • Option pricing theory can be extended to measure the volatility of a series of price changes over very brief time frames of just a few minutes. Results can be visualized as a series of bars on a histogram chart.

  • These histograms are useful tools for identifying several different types of price change behavior: rising instability that often precedes a large change; decreasing volatility near the end of a sharp up or down trend; and sudden up-down or down-up transitions that sometimes precede changes in direction.

  • Although these indicators cannot be used to predict the direction that a stock will ultimately take, they can be used as entry points for certain types of trades, or as triggers ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required