I'm curious to what rules or conditions people here follow that must be present before opening a trade.

    I've really only traded currencies off an on, but my rules for a trade don't seem to fit for options.

    My must have "rules" are:

    • directional agreement on 3 time frames, usually day, week and then which timeframe I'm using for entry (entry timeframe not applicable to options).
    • Which direction I intend to enter should be at or just coming out of the overbought/oversold of the opposite direction.
    • The third is more variable, but price activity should be interacting with some obvious support or resistance, whether horizontal or diagonal in a trend.

    With these rules, available trades are limited if not rare. Applying these rules to options, there seems to be more work and the same limited entry opportunities.

    NVDA for example, and I know today is earnings report, but using my rules on the current chart, it's comin' down. But in reality, since it's a super hyped and fomo'd ticker, it's probably not coming down; and if it does, it's going to be very limited before it gets hyped the other way. So my rules do not apply here.

    Trade entry rules
    byu/capriciousComposer inoptions



    Posted by capriciousComposer

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