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There is a muti-month plattern playing out on the Nasdaq. First we had a large move up from mid-July to September, and then a large retracement down. After a large move in one direction and a large retracement, there tends to be a horizontal triangle/equlibrium pattern. A horizontal triangle/equlibrium is when there is a large choppy range that creates a pattern that looks like a triangle.
There was a wave pattern, where the top was a A, then moved down to a B, and bottomed at a C, which I've drawn in. We should move up to 50% retracement at 11552, then a small move down, and continuation higher.
This tightening range likely won't break until after the election.
The best way to play this pattern is to sell premium and use options spreads. If you are interested in a more in-depth analysis, along with the exact strikes and expiration, and position sizing for the options spreads trade I've got on going into this week, I'll link a newsletter that I wrote below that talk about this.
There is a muti-month plattern playing out on the Nasdaq. First we had a large move up from mid-July to September, and then a large retracement down. After a large move in one direction and a large retracement, there tends to be a horizontal triangle/equlibrium pattern. A horizontal triangle/equlibrium is when there is a large choppy range that creates a pattern that looks like a triangle.
There was a wave pattern, where the top was a A, then moved down to a B, and bottomed at a C, which I've drawn in. We should move up to 50% retracement at 11552, then a small move down, and continuation higher.
This tightening range likely won't break until after the election.
The best way to play this pattern is to sell premium and use options spreads. If you are interested in a more in-depth analysis, along with the exact strikes and expiration, and position sizing for the options spreads trade I've got on going into this week, I'll link a newsletter that I wrote below that talk about this.
Comment:
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