5 Charting and Trade Timing
Price charts include a wealth of information, which leads to good timing for both stock trades and option hedges.
Options trading can and should be based on analysis of the stock’s price chart, on which current trends and reversals can be spotted and acted upon. The proximity to trades in relation to the current trading range is a critical aspect of skillful timing. This chapter examines many crucial charting attributes and explains how they work. This information is at the core of proper timing for option hedging strategies.
Included in the following pages are basics of chart signals, both Western (well-known technical price patterns) and Eastern (Japanese candlesticks). The candlestick chart is today the default ...
Get Making Money With Option Strategies now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
