Zoom classic MACD daily divergence in early August
Daily Bullish MACD Divergence -Trade Analysis ZM August 5, 2021
The Options Hunter Approach is based on four distinct aspects
Step 1: Divergences in technical indicators warn that the current trend is losing momentum in the short term. The stock or index is making new highs or lows, and the MACD indicator does not confirm new highs or lows, which is known as a divergence.
Macd Divergences can be Bearish or Bullish and signals to option traders a potential opportunity for extraordinary gains. Divergences can occur in any timeframes and with many indicators, but we’ll address multiple timeframes in-depth shortly.
The Options Hunter approach focuses on divergences between the MACD and the price action. We don’t employ other indicators such as RSI, Stochastics or Bollinger bands as we keep our approach simple, straightforward, and repeatable
Daily Chart ZM August 5, 2021
In this example, we’ve identified...
IWM strikes again August 20 and 27, 2021
Daily Bullish MACD Divergence -Trade Analysis IWM August 20, 2021
The Options Hunter Approach is based on four distinct aspects
Step 1: Divergences in technical indicators warn that the current trend is losing momentum in the short term. The stock or index is making new highs or lows, and the MACD indicator does not confirm new highs or lows, which is known as a divergence.
Macd Divergences can be Bearish or Bullish and signals to option traders a potential opportunity for extraordinary gains. Divergences can occur in any timeframes and with many indicators, but we’ll address multiple timeframes in-depth shortly.
The Options Hunter approach focuses on divergences between the MACD and the price action. We don’t employ other indicators such as RSI, Stochastics or Bollinger bands as we keep our approach simple, straightforward, and repeatable
Daily Chart IWM August 20, 2021
In this example, we’ve...
The Volatility Index (VIX)
Volatility Index is an innovation that provides options traders with the opportunity to achieve spectacular returns rarely present in other options markets.
The index is based on the implied volatility present in 30-day S&P 500 options. In truly efficient markets, this can reliably be seen as the market’s expectation of near-term volatility. Thus, once the index is created, traders can implement a view of volatility isolated from other variables common to option pricing, such as underlying asset prices, dividends, and even days to expiry.
The VIX’s volatility becomes a tradeable commodity and allows a straight purchase or sale of volatility,
The VIX has a well-defined historical correlation with the S&P. History shows that equity markets rise at a far slower rate than they fall. As such, the historical volatility of the S&P is inverse to its price.
This makes the perfect timing tool for equity markets. When the VIX is low, the markets...
Bullish MACD Divergence -Trade Analysis IWM
Bullish MACD Divergence -Trade Analysis IWM
The Options Hunter Approach is based on four distinct aspects
Step 1: Divergences in technical indicators warn that the current trend is losing momentum in the short term. The stock or index is making new highs or lows, and the MACD indicator does not confirm new highs or lows, which is known as a divergence.
Macd Divergences can be Bearish or Bullish and signals to option traders a potential opportunity for extraordinary gains. Divergences can occur in any timeframes and with many indicators, but we’ll address multiple timeframes in-depth shortly.
The Options Hunter approach focuses on divergences between the MACD and the price action. We don’t employ other indicators such as RSI, Stochastics or Bollinger bands as we keep our approach simple, straightforward, and repeatable
15-minute Chart
In this example, we’ve identified a Bullish Divergence on...
Bullish MACD Divergence -Trade Analysis NIO
Bullish MACD Divergence -Trade Analysis NIO
The Options Hunter Approach is based on four distinct aspects
Step 1: Divergences in technical indicators warn that the current trend is losing momentum in the short term. The stock or index is making new highs or lows, and the MACD indicator does not confirm new highs or lows, which is known as a divergence.
Macd Divergences can be Bearish or Bullish and signals to option traders a potential opportunity for extraordinary gains. Divergences can occur in any timeframes and with many indicators, but we’ll address multiple timeframes in-depth shortly.
The Options Hunter approach focuses on divergences between the MACD and the price action. We don’t employ other indicators such as RSI, Stochastics or Bollinger bands as we keep our approach simple, straightforward, and repeatable
Daily Chart
In this example, we’ve identified a Bullish Divergence on the MACD indicator in a striking contradiction to the...
Interview with Options Expert Dale Wheatley in Traders World
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| Traders World: What is your background before you started trading options? Dale: I was a Telephone Contractor for many years and needed and wanted an investment vehicle that could travel with me, one that was not too complex. I studied all about different investments such as real estate, buying discount mortgages, tax certificates, etc. as well as the stock market, but none of those things seemed simple enough for me to control myself without a great investment of time and money. I simply did not have much time to devote to those things since I worked 100-hour weeks and moved around the country doing storm reconstruction for telephone companies, etc. I accidentally happened across options in the mid-1980s and I immediately saw the advantage of the limited risk-vs-potential returns. |
TRADERS WORLD: How did you get started in trading options?
Dale: I began trading options in the mid-1980’s. I read every book I could find about options...
Hourly MACD divergence on CVX and XOM reaped 500% next morning
Can't really miss these divergences on the hourly charts of CVX and XOM and picking up the out of the money option before the close on 9/15/20 was perfect timing.
Entry in the last 30 minutes of the trading day as the stocks just started turning up was ideal. The XOM September 18, 37.5 calls could have been had for 11 or 12 c. The next day they were as high as 83c. An alert trader could have taken 500% gain, and with over 2500- 3000 contracts trading a day the spread was reasonable.
The CVX September 18, 79 calls could have been had at a similar time to XOM in last 30 minutes of the trading day for 12c or so. By the next day they traded as high as 1.06. Spread wasn't as nice as XOM as volume was 300 - 500 contracts but again 500% gain was easy to make.
Monthly MACD Divergence on Retail Sector shows the Way
In spite of the bad news on retailers, I see many with strong monthly MACD chart divergences: BBBY, which I showed weeks ago in class & also LB, BGFV & many others. How can YOU find these before they begin their strong up moves? By doing exactly as I teach!
MACD Divergence show Pressure on the Indexes
With all of the major components like AAPL, MSFT, AMZN down, it must be putting pressure on the indexes that they are a part of & how about Volatility(VXX)? Is is showing any clear upside patterns? What about the short indexes like SPXS & QID? Do we get “confirmation” from these?
VXX 30 minute MACD divergence 7-23-20
SPXS 30 minute MACD divergence 7-23-20
QID 30 minute MACD divergence 7-23-20
MACD Divergence on the VXX is the Trade
At 1:45pm eastern on June 12 the 5 minute chart on VXX made its way to the high it had reached 2 3/4 hours earlier, but we were concentrating on the MACD indicator. The MACD had a clear divergence indicating that the price action on VXX shouldn't be at $45 but more like $40 or lower based on the slope of the MACD peaks
As predicted the price dropped to below $40. this powerful move down is often reflected with a reverse MACD divergence up on the SPY. In this instance as the chart below clearly shows, there was not one in the offering. So we went back and looked at the VXX puts for big gains on the near term OTM options.
