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Hey, traders.
It's been a long time since we've talked last time, right?
Well, the specifics of the last weeks of my life have changed dramatically.
I try to look for really strong models in order to avoid short-term trading inside the day and to free up time for obtaining a hedge fund manager license. I apologize in advance for not putting out so many trading ideas as I used to.
So, an interesting picture is emerging from AT&T.
What's on the chart:
1. The level formed by the stop of the strong decline on March 12.
2. The level is confirmed on March 16, as well as many touches and false breakouts.
3. Separately, I would like to note that on March 26, we received the upper retracement point for the downtrend, which once again proves that there is a strong short player.
4. However, now we are clearly observing the consolidation under the level.
Many traders studying the candlestick analysis patterns call the formed model a "triangle".
Personally, I don't like patterns and I don't even try to remember them, it's much more convenient to understand the logic of the market, but now it's not about that.
5. As you understand, it is not easy to break through such a model from the first time. I'm waiting for a pressure under the level.
6. The right signal that a long player will soon start his attack on the resistance level is "sticking" bars to the level.
Lets take a look at the general market sentiment.
The summary board of options on this paper with expiry date 2020-08-14 shows the relative parity of buyers and sellers: Put/Call Open Interest Ratio: 1.04 - it means there are more sellers than buyers.
Now see the options summary board with the following expiry dates:
2020-09-11: 0.43- The mood is changing. There are more customers.
2020-09-18: 0.87
I am fully satisfied with these option rates. This means that my idea for this paper now coincides with the general market sentiment in the relatively near-term foreseeable future.
Important: Just before the deal itself, as you understand, I will be looking at the chart. In my trading strategy, the chart has the highest priority. I trade only what I see with my own eyes. The relative performance of the composite option boards is just an additional benchmark.
My strategy is to enter:
Waiting for a squeeze under the level, then waiting for a breakout and fixation.
I enter only after retest of the level to avoid getting extra SL, thus reducing the risks.
Output in parts, on the marks: 33 and 36.47