Scan short trade setup on daily chart using cyclitecnical data and high options activity
Example includes the scan inside ThinkOrSwim
Hello all today I have a scan that will find when the cyclitecnical data and the options market coincide for a short trade in progress.
Nomenclature: Its the “daily chart below 40 day FLD, above 20 day FLD, Hi options activity scan short
In the past, looking at charts I would always find a short trade a little too late. Its specifically when price has confirmed a 40 day peak has been put into the market, but is still above the 20 day future line of demarcation.
Here you can see price gets below the 40 day FLD (purple hi-lite) and is above the 20 day FLD temporarily (purple line tracking over price), on September 18th and 19th, high options activity could possibly be seen on AAPL 0.00%↑, allowing the prediction of this trade setup to be slightly to moderately successful over the next 7 trading days producing a maximum of 4.5% for a short term swing.
The above is a BABA 0.00%↑ scan short with the same setup for another example.
The thing that makes it likely to be successful, is that the price already was bearish the week before and it was heading lower into a larger trough in the future. This aided the analysis to take a short trade or a short options trade of some sort.
You could also use it to predict underlying share price movement to the downside.
Here is the ThinkOrSwim scan that includes all the variables to identify these trades everyday!
Good luck and enjoy
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