It seems like everyone is gearing up for high volatility. That is why it won't happen. The most people lose when it goes sideways. Range bound through the end of the year, then January Effect.
I know the feeling, I also do a great job of selling lows. Please let us know when you give up that MNQ.
All 'down-trends' get busted. They are all fake-outs. They are generated by short-sellers, Not long positions exiting the market.
Zoom your chart out to get more reliable formations. Whether they are reversals or continuations, that neck-line is highly trade-able. I've been thinking that any TA on charts faster that 30 mins are all fakeouts. I've even been considering changing to 1 hr charts for day trades.
Adding to the number of total shares makes each share worth less. Pretty easy fundamental to understand. However it only adds fuel to the demand fire. Market makers having a field day raising the price as the line to purchase has snaked around the building. This can continue for a long or short...
What does it really mean for the issues leaving? They become less hedge-able with an index future? All three are down on the news, but why? What really changed for them?
In your first example the call delta of .20 is called 20 Delta. It is like being long 20 shares of the underlying. Long one 20 delta call and short 20 shares gives you a delta neutral position. Long volatility.
I still use them on the daily & weekly charts. Kinda like a road map for potential price moves. I think it is interesting to see the price react around the pivots. Like when the close lands right on tomorrows pivot.
What is the volatility of the underlying for the time frame you trade? Find that out then put your stop 3x beyond that to keep your stop outside of the noise. Then make your 3x stop level less than 5% of your portfolio value. If you have a 12% stop and 5% profit, you would have to pick right...