Option Profit Taking May 12th Market Wrap-Up

Option profit-taking is much better analyzed using simple candlestick analysis rules. Option profit-taking should occur when the probabilities of your option trade is starting to diminish. When the markets are in oversold conditions and the indexes start revealing potential reversal signals, the candlestick reversal signals revealed an individual stock moves become more enhanced. The Dow formed a Doji in the oversold area today. The NASDAQ formed a meeting line signal, a bullish potential reversal. That becomes the first inclination to watch for reversal signals in individual stock positions. A bullish engulfing signal occurring in oversold condition of a stock price and the market start to show some bullish signs, whether a full-scale reversal or merely a bounce back up to the T line, produces better probabilities for taking profits in put trades. A major advantage of candlestick signals is allowing for the identification of very strong reversals. The strongest individual candlestick signal is the kicker signal. It has three variations. Join us Saturday, May 12 for a Candlestick Forum Mini Spotlight training on identifying and utilizing the kicker signal. Visually recognizing this signal and knowing the expected results will greatly improve your trading profitability.




Chat session tonight at 8 PM ET. Click here to register.

Good Investing,

Stephen Bigalow