"Technical Analysis covers everything from Price Action trading to Trading Indicators." https://www.alphaexcapital.com/technical-analysis-vs-price-action/ If PA is one type of TA, do you trow that baby out wit da batwater? Are you a dyed in the wool FA guy? Why, why not? What would you say are some 3 to 5 essential datapoints to factor in for a typical FA Trade? This thing needs more fleshing out by some FA Hands... Please feel free, any who are. What Is Fundamental Analysis? Temp Thread Toward of a Future Section On This Essential Topic. https://www.elitetrader.com/et/thre...uture-section-on-this-essential-topic.344493/
TA seems to work better in normal market conditions. It's not that useful when the News Cycle overwhelms it, as is happening in this case, imo. Though a nimble trader may be able to slice it up by day trading big volumes. I ain't that guy. FA here is basically the question: How much damage will PFE take and how much can they contain the Truth from coming out? Will the liability shield hold or be penetrated (massive unknown)? What will be the outcome of the lawsuits (big too, but not as big)? I actually don't trade either FA or TA. I trade closer to market neutral with a bullish bias using various option spreads. 1) Safe 2) Effective
This homes in on an area of interest. No matter whether a trader thinks that markets are essentially not subject to TA at all vs a trader who thinks the opposite, no problemo for an intrepid Options Speculator being that methodology exists for those in either camp to join in the fun, no? Likewise, when market conditions lend themselves to a 'favored' PA setup/trigger pair an intrepid options player could use one set of options speculation techniques, then when that is not the case that very same player could use different options tools from the tool chest (this is getting too big for an ordinary tool box, lol) to capitalize on that world of opportunities? This last paragraph makes me wish there were 48 hours in a day, lol. That not being the case, and I realize that if you can play options "market neutral with a slight bullish bias, chicago boxcar, boston back..." you didn't just fall off the turnip truck so straight "buy calls" is a relative no-brainer, what would you recommend for say a setup/trigger pair like this one yesterday on sqqq at 9:40? linked... https://www.elitetrader.com/et/thre...t-right-here-baby.343012/page-25#post-5666891 Would an options buy to enter calls pay better dollar for dollar than outright buy the etf? What delta might be best to work with?
as I said, I don't day trade. Tried it - failed, so not the guy. However, if I wanted to trade something like that, I'd check out the ATR, then set up a vert spread on the nearest expiry and ride it to Friday, I suppose. Or straight up buy calls for a day trade. Deltas? - I don't exactly think in Delta terms so much as Premium. I look at premium and pick the option with the biggest drop from the one above, so I pay less. Then if it moves in my direction, I lose less prem as I gain intrinsic. Contrariwise, if it moves against me, there is a bigger premium gain as I lose intrinsic. Theoretically. I find ultra-near term ATM options become so PA volatile with small underlying movements, that any edge eludes me. I want to grab some premium over a few months/weeks or so, and set up the trade so that if it goes north I make at least 100% of total risk. I look at a few FA things like P/TBook, Price to FCF, and a couple of TA things like support on my time frame. These are mainly to get confirmatory signals for a trigger pull. Mainly I do a R/R calc on the options chains - is it >50% to win AND does the setup Reward to Risk >1. If both of those conditions are satisfied and I get a few more confirmations from the other stuff, I zero in for a spread I like. Higher vols work with diagonals & longer term verticals. medium vols work pretty well with calendars. Ultra-high vols work well with near-term calendars, but... results are VERY tricky to manage. Lower vols work with OTM verts long-term IF the stock has proven it can spike multiple times in the past. YOU: Would a long options call pay better than outright shares? Ultra-short term options with tight spreads - of course. Not even comparable. Lower absolute risk, much higher potential return.
I switched to microsoft edge from chrome for that link and it worked. Strange. Also I don't think it is a virus issue.
%% I looked @ buyin' PILL\ too bearish in a bear market\..............................................
Nice vid Fauci got nailed anyway. He's going to pay big penalties on the Health front. Pains and disabilities are what he has in store for himself in his future for shafting US ALL. Rand Paul's gonna eat him alive