HomeFreeFB and TSLA 9-18-15 optionflow and harmonics

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FB and TSLA 9-18-15 optionflow and harmonics — 4 Comments

  1. Nice videos, good visualization of how the indicator works. From the many signals that you get, do you only take the ones that are bigger swings than the smaller ones with option flow behind the direction? Thanks!

    • It depends on what you’re objective is. For me, since I only trade weekly options, I prefer the following:
      PRZ reversal trades of “larger” timeframes, 10,15,30min charts. And towards the end of the week, specifically on Friday I like reversal trades of smaller timeframes; 1,3,5min timeframes.
      AB=CD entry trades, specifically if the “A” is at a previous PRZ, see the examples of this Friday 9/25/15
      the optionflow is a good confirmation, and with the data I have so far, I’ve seen some good opportunities on trading one of the previous mentioned harmonic setups, when there is a strong bias on the same direction on the optionflow. Thing is, market behavior changes all the time; with high volatility, we’ll get more signals on the smaller timeframes. in periods of consolidation we’ll often see price fluctuating around both long and short CD leg entries. I’ve given a few examples of that as well. We saw that this week on Tuesday and Wednesday. But at the same time optionflow remained bearish. That’s why I recommend that you use maybe one other indicator in conjunction with harmonics.
      Hope this helps. Thx, P.