Hello,
New to the forum, but not trading.
I have been sucessfully trading the options on the NASDAQ 100 (NDX) for a couple weeks now, and what I have began to notice is a pattern that is very tradeable.
Observations:
When there is a gap opening the gap is "Usually" filled in during the same day (or really close, like today).
The chart pattern in the 45 minutes will help detirmine the support and resistance for the days trade.
The fib retracement on this first 45 minutes will give you set targets for your trade.
I use the fib retracement a little different. Instead of placing it on the High and the Low, I will wait for the first support / resistance to show itself, and then set it like this...
Place the "0" on the LOW and place the 38% line on the HIGH.
This will give you a projection target to trade at.
I then will trade off the rebound of the 61.8% line (Call or Put is detirmined by the opening trend).
Redraw the Fib retracement now from the Trade entry point, back to the next major previous support, again using the 38% line for the reference. This will give you and expanded target range. I will exit the trade near the next Fib line.
I have attached a snapshot of my trade today so you can get the picture.
BTW...I made $1360 after commissions on this.
New to the forum, but not trading.
I have been sucessfully trading the options on the NASDAQ 100 (NDX) for a couple weeks now, and what I have began to notice is a pattern that is very tradeable.
Observations:
When there is a gap opening the gap is "Usually" filled in during the same day (or really close, like today).
The chart pattern in the 45 minutes will help detirmine the support and resistance for the days trade.
The fib retracement on this first 45 minutes will give you set targets for your trade.
I use the fib retracement a little different. Instead of placing it on the High and the Low, I will wait for the first support / resistance to show itself, and then set it like this...
Place the "0" on the LOW and place the 38% line on the HIGH.
This will give you a projection target to trade at.
I then will trade off the rebound of the 61.8% line (Call or Put is detirmined by the opening trend).
Redraw the Fib retracement now from the Trade entry point, back to the next major previous support, again using the 38% line for the reference. This will give you and expanded target range. I will exit the trade near the next Fib line.
I have attached a snapshot of my trade today so you can get the picture.
BTW...I made $1360 after commissions on this.
