Trading tips: read between the lines (and read the lines yourself as you read them)

Most stock charts give you fine clues as to what traders are actually thinking. You just need to know where and what to look for – We are big fans of trading systems because they take out the traps caused by emotion and deal with them; Emotional decisions tend to do more harm than good. We will never deny that there is an artistic side to a science-based, technology-driven approach to finding business setups. And when this art leaves clear clues supporting your algorithm, it's much better. We received one of these unexpected additional prompts on Monday to support the setup of a transaction we created for our Earnings Ekstravaganza alert service. It's worth checking out just because something can be learned. But first. Our earning Extravaganza options trading newsletter is slightly different from our other services. Instead of using specific chart-based trading triggers to find good trades, we aim to take advantage of the high volatility resulting from the timing of earnings. It requires some form of trust in the direction of the stock after a earnings report. It is not always clear in a map. Indeed, this is rarely seen on a chart, given the unpredictable post-profit movements over the past few quarters. That said, there are some subtle tips to help you out. For example, consider the Earnings Extravaganza's purchase of Procter & Gamble (PG) search options on Monday before the release of Tuesday's final quarter results. With a quick glance we can see an overall bullish trend, but at the end of Monday – when we bought calls – P&G shares actually dropped to the day. Look good. As the stock fell one day, the stock was also significantly higher than its intraday low, backed by a kiss from its 20-day moving average (blue). This is a sign that in the end the bulls "want" more than the bears. At the same time, merchants Read more

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