1. The Green Circle shows that the Buyers are in Control 2. The Volatility is normalized within NFLX (i.e. risk / reward is back to normal) 3. A pullback within these parameters can be traded with Option Spread for a good R/R
wouldnt you buy puts in this situation, according to your indicator reading at +400... ?
..and buy calls in dec 18 / sept 19 with your indicator reading at extreme lows?
Did i miss something?
UDAY_C_Santhakumar
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@SS96, The indicator is set for a larger timeframe (50days). So If you tune it down and it has the same reading yes.
But in this case, the strength to the upside is high, volatility is low. So buying short term swing call makes sense.
- Look at the LULU trade... Shorting that makes more sense, as its going higher.
SS96
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@ucsgears, do you have a more thorough write up on how this indicator works? I see a dec 18 - mar 19 move and your indicator makes sense there. but now i see extreme high reading and its somehow not bearish? Where do you read volatility?
UDAY_C_Santhakumar
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@SS96, The indicator down moves are offset based on volatility. for. eg. If you load up SPX, When the volatility was going higher, the indicator did not show extreme reading.
I would do a video stream for all my indicators I have posted. Provided there is enough interest. As it takes considerable time.
What I can do is, share some trading examples, utilizing the indicator.
SS96
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@ucsgears, i think examples with explanations would be great. as it is - its not very clear how to use it.
UDAY_C_Santhakumar
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@SS96, Your idea of shorting netflix was true when the PANV was +400 and NFLX was making higher highs (candle stick). After a small selloff, The momentum slows down, All I am saying now is there is a bounce coming up and debit spread / debit trades will work.
I will try to explain it in the next few setups I post utilizing the indicator.
dave.seremek
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@ucsgears, Do you have any more examples of using your PANV lately?
UDAY_C_Santhakumar
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@Dave.seremek, Nothing on the stocks I am currently watching. However, I have posted the setups based on my other indicators.
..and buy calls in dec 18 / sept 19 with your indicator reading at extreme lows?
Did i miss something?