Option trade high probability entry strategies are greatly enhanced when using candlestick analysis. Option trade high probability entry strategies are the combination of candlestick signals confirming pattern breakouts. The overall market trend is still bearish although it traded positive today. The downtrend remains in progress as long as the indexes continue to close below the T line. However, it is not unusual to see a bounce back up to the T line during a downtrend. This allows investors to be prepared for high probability entries based upon specific bullish or bearish patterns developing. Witnessing the premarket futures indicating a lower open tomorrow would be enhanced evidence dumpling top patterns would still be in progress. At these levels, buying puts spreads is much more feasible than buying puts outright. A positive open would indicate the probabilities of a few days bounce back up to the T line levels. This also allows for high probability option trade entries. Utilizing candlestick analysis allows an investor to get much more clarity as to which direction a price/market trend will move based upon the expected results of candlestick signals and patterns.
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Good Investing,
Stephen Bigalow
