FREE Swing Trade Ideas

April 6, 2017 by Rick Saddler

The Feds Through a Spanking on the Market

From a Bull’s Eye

The Feds through a spanking on the market when they said they had 4.5 trillion to unwind from the balance sheet.
SPY lost about 1.06% top to bottom – IWM lost about 2.42% about top to bottom, LOL that woke a few people up yesterday. For some time now we have been warning our member’s not to get too long and blind to the bear. These charts have been giving warning signs and clues, we have faith and trust our chart indicators, in fact, we trust them so much we have been holding TZA and UVXW for a few days now. Let’s take the SPY one step at a time – SPY $233.20

FREE Trade Idea – DK

Daily Chart – The chart has created a bearish “h” pattern and a Blue Ice Failure. The pattern developed after the Bears had their way with a Bearish Engulf and a double top. Price has pulled the T-Line below the 34-ema, the 50-sma is next.
Trader’s Tip – Look at the 3-Day chart, and you can see that the bears are not allowing the Bulls to get through the 200-sma
Today we have 10+ trade ideas located on the members trade ideas page each day.

Today we have 9 more members trade ideas located on the members trade ideas page.

Spotlight Trade – BOFI (short)

BOFI (short) – Closed lower yesterday pushing the gain to 19.98%. The trade started after HRC posted the short trade to the members. BOIF was a failing chart and then begun to draw a Bearish “h” Patten. Price crawled up a bit and then rolled south, broke through our dotted deuce and headed to the 200-sma. Note the

Bearish “h” (Uptrend Reversal) Pattern Basics

The Bearish “h” pattern looks like the letter “h” and is considered an uptrend reversal pattern. It forms as part of down trending price action. You might say that this is the upside down version of the Bullish J-Hook pattern. As price pulls back from a swing high, the key is to look for a brief rally with three or four candlesticks that have higher highs because this may be part of the Bearish “h” pattern. After this, price stops moving up and start moving sideways.

The highs of the candlesticks in this part of the “h” pattern stay in the same price range. You can literally draw a box around the candlesticks that form the top of the Bearish “h” pattern. Price then starts to move lower and breaks down and out of the sideways price action. Price continues lower and breaks down below the low at the start of the pattern. This breakdown confirms the Bearish “h” pattern and signals a shorting opportunity. The downtrend resumes and price moves lower. Read More.

Investing and Trading involve significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks or it’s associates should be considered as financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service

Members trade ideas below

Scanned from Tc2000 | 10-15 trade ideas daily

[button_1 text=”Hit%20and%20Run%20Candlesticks%20%2F%20Right%20Way%20Options%2030-Day%20Trial” text_size=”22″ text_color=”#000000″ text_bold=”Y” text_letter_spacing=”0″ subtext_panel=”N” text_shadow_panel=”N” styling_width=”40″ styling_height=”30″ styling_border_color=”#000000″ styling_border_size=”1″ styling_border_radius=”6″ styling_border_opacity=”100″ styling_shine=”Y” styling_gradient_start_color=”#ffff00″ styling_gradient_end_color=”#ffa035″ drop_shadow_panel=”Y” drop_shadow_vertical=”1″ drop_shadow_horizontal=”0″ drop_shadow_blur=”1″ drop_shadow_spread=”0″ drop_shadow_color=”#000000″ drop_shadow_opacity=”50″ inset_shadow_panel=”Y” inset_shadow_vertical=”0″ inset_shadow_horizontal=”0″ inset_shadow_blur=”0″ inset_shadow_spread=”1″ inset_shadow_color=”#ffff00″ inset_shadow_opacity=”50″ align=”center” href=”https://hitandruncandlesticks.com/hrc-rwo-30-day-offer/” new_window=”Y”/]

007 – 2017 Hit & Run Candlesticks – Right Way Options – Strategic Swing Trade Service – Trader Vision – All Rights Reserved. Terms of Service Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Rick Saddler, Doug Campbell or this website should be considered as financial or trading advice. All information is intended for Educational Purposes Only.

The Nasty Price Action of a Whipsaw Posted 4-6-17

April 6, 2017 by Doug Campbell

The Nasty Price Action of a Whipsaw. Who’s to Blame?

One of the cruelest price action occurrences is the intraday whipsaw and yesterday we witnessed a doozy! If you apply a little trader psychology to the whipsaw the emotions, Fear, Greed, and Panic will always come to the surface. One of the places that whipsaws commonly occur is at or near price action bottoms when Fear suddenly reverses to Greed. Of course, the opposite of that is what we witnessed yesterday. With the market displaying topping patterns and uncertainty concerning the future of the rally Fear can quickly shift to Panic at or near price action tops. Most commonly, an event or news story will trigger these nasty intraday reversals in price action.

Traders will often point to these events and assign blame to whatever triggered the reversal for their misfortune. While it’s true, there was trigger point it’s incorrect to blame the person or the event that set the whipsaw in motion. The ultimate responsibility for any losses incurred rests squarely on the shoulders of the trader. Sorry I know that hurts to admit, but it is the truth. When the market is trending higher, and everything is coming up roses we as traders often fail to see topping action or choose to ignore it. Price action provided the clues but our emotions clouded our view. Playing the blame is a bad habit. Accept that the ultimate responsibility for success or failure rests with you and you alone.

On the Calendar

On the Economic Calander today, we have the weekly jobless claims and a single Fed speaker. It would be unlikely that either will have the power to move the market today. On the Earnings front, there are 25 companies reporting, but none are noteworthy unless you have been holding one or thinking of entering.

Plan of Action

My plan for the day do little more than managing the positions that I’m in and continue to prepare. After the big reversal yesterday we can expect an extra dose of volatility and whippy price action this morning. However, there is a very good chance the market will get very quiet today as we wait for the Friday morning employment report. If I do decide to enter any new positions, they will be smaller than normal with a plan to take quick profits if I feel the trade is at risk.

Watch Morning Video | Right Way Options

Trade Wisely,

Doug

FREE Swing Trade Ideas

April 5, 2017 by Rick Saddler

Overall the market is in a state of rest (Lazy)

From a Bull’s Eye

As of yesterday’s close – Overall the market is in a state of rest or lazy some might say because of the lack of a bullish or bearish direction. One thing I am sure of is that will change.

Daily – Price has been able to keep the T-Line above the 34-ema, and 50-sma still trends upward. But we must acknowledge the three lower highs.

Hourly chart – As we talked about in the trading room yesterday, chart changes start with early time frames, and the hourly is working on a Red Ice Failure with the 200-sma, and the Dotted Deuce is below the 200-sma as well. Price is toying with the Dotted Deuce on the 2-hour chart which can result in a test of the 200-sma

FREE Trade Idea – CERN

Daily Chart – The LH/Hr’er Low pattern breakout after a month-long pullback that closed back into the 23.6 retracement area. The 2,3,4,5-day charts are in the early stage of a J-Hook continuation pattern.

Today we have 9 more members trade ideas located on the members trade ideas page.

Spotlight Trade – RH

RH – Closed higher yesterday pushing the gain to 50.72%. The trade started with a Bull Kicker that broke above the T-Line, then challenged the 200-sma with success. And as of yesterday’s close, RH has 28-day T-Line Run.
RH – Was published for the HRC members on March 3, 2017. Typically we publish 10-15 trade ideas for the members each day.

Bullish Kicker Pattern

To identify a Bullish Kicker candlestick pattern, look for the following criteria:

First, the first candle needs to be a black or bearish candlestick. Second, the second candle (which is white or bullish) must open above the close of the first candle, forming a gap. Third, the movement of the price during the formation of the second candlestick should never drop into the gap formed between the first and second candle. As you might have guessed, this means that there is rarely a bottom wick on the second candlestick. Read More.

Members Trade Ideas Below

“Patience, Grasshopper” Posted at 8:18 AM EDT 4-5-17

April 5, 2017 by Doug Campbell

“Patience, Grasshopper” Sometimes Less is More For Traders.

When I was a kid one of my favorite shows was a TV series called “Kung Fu.” When the student played by actor, David Carradine wanted to rush his education; the Kung Fu master would say “patience, grasshopper.” The phrase is so popular it has become part of the US lexicon. However, I’m not sure many fully understand it’s context. What the master wished to confer was that the desire to accomplish was not enough. The real message was that with patient dedication, hard work, thoughtful study and repeated practice that success or mastery would be the result.

I think that kind of thinking applies well to trading and the current condition of the market. Sitting in front of our computers we often tend to rush in, but the desire to hurry the process most often produces an undesirable result. The trader with the patience to prepare, watch and wait for the best time to act will most likely succeed.

On the Calendar

Today on the Economic Calendar we have the ADP Employment Report, ISM Non-MFG, Petroleum Statis Report and the release of the FOMC minutes. A big day for news to be sure. Of those reports, it’s the report on the oil supply and the FOMC that have the most chance of moving the market. On the Earnings Calendar, there are 23 companies reporting today.

Action Plan

I have mentioned in my morning notes and several times during the Right Way Options sessions that we should expect choppy price action. Not that I want to be repetitive, but I believe we can expect more of the same the rest of this week. After the morning rush, you should not be surprised to see the volume to become very light as we wait for the FOMC minutes. After their release, there will be a flurry of activity that new or inexperienced traders would be wise to avoid. Keep in mind the big Employment Situation report will be out on Friday morning. The market will likely once again become choppy until it’s release.

Having said all of that my plan for the day is to be very patient watching, waiting and preparing for my next trade. I have only made two entries this week, and that number may not grow at all today. I don’t trade just to trade I will follow my rules and remain in control of my emotions.

Watch Morning Video | Right Way Options

Trade wisely,

Doug

Stock Option Basics Posted 4-4-17

April 4, 2017 by Doug Campbell

Stock Options – Your Options Trading Success Starts Here!

Trading stock options may be a little scary at first due to their level of complexity. However, options trading provides many benefits well worth the additional learning curve they may require. Most people think the power of options comes from the “leverage” they provide. In truth, the real power of options is in their versatility. Depending on the strategy used the trader can construct positions that are conservative to those used for pure speculation. The birth of options came from the need to manage the risk of significant positions. Learning effective hedging strategies alone is well worth the effort required to educate yourself on these valuable tools.

What is a Stock Option?

So, What is a Stock Option? Simply stated options are contracts between one Buyer and one Seller. The Buyer of the contract is known as the Holder while the Seller is called the Writer. Option contracts are standardized into 100 share lots and based upon the underlying equity. The terms of the contract include the Strike Price, Expiration Date, and of course the Underlying Stock upon which it the contract is structured.

Strike Price

The price which the contract writer (seller) is obligated to accept as payment for the purchase of the underlying stock is called the strike price. The holder (buyer) has the right to buy the underlying stock at the strike price, however, is not obligated to do so.

Expiration Date

One indisputable fact about options contracts is that all of them will expire. It’s critical, for the options trader to know the expiration dates as they vary depending on the instrument used. For example, Monthly options are the most widely used contracts. The last trading day for a monthly option contract is the 3^rd Friday of the month, yet it technically does not expire until Saturday. A Weekly options contract will expire the Saturday just eight days after issue while a Quarterly option expires at the end of quarter no matter what day of the week.

If the price of the stock, is below the strike price at expiration the contract is (out-of-the-money), and the option contract is worthless. Therefore, if the stock is above the strike price at expiry, the option is (in-the-money). The Options Clearing House will transfer the stock of an In-The-Money Option, to the holder at the listed strike price.

Rights and Obligations

An option contract Buyer acquires the right but not the obligation to buy the underlying stock at the Strike Price before the expiration of the contract. Thus, the Buyer has the right to buy the underlying stock but may choose to sell the option contract collecting a profit or stopping a loss. It’s important to note that the buyer’s rights to exercise the contract are only valid if the value of the underlying stock is greater than the strike price before expiration. The seller of the contract has an obligation to fulfill the terms of the contract at expiration or upon the buyer’s order to exercise. However, the seller can buy back the contract to take a profit or stop a loss before expiration or exercise.

Option Types

There are call options and put options for each strike price. Call options are often thought of as a long instrument while Put options are considered short instruments, yet the opposite may be true. Holders of calls or puts are in long positions. Therefore, option writers are in short positions. The table below may be helpful in sorting out the details.

Premium

All stock options have a premium associated with them. Options writers collect a premium as compensation for the risk of carrying the obligation of the rights conferred to the buyer.

Moneyness

Moneyness is the term describing the relationship between the Strike Price of an option and the current Trading Price of the underlying equity. In options trading, you will commonly hear phrases such as In-The-Money, Out-Of-The-Money, and At-The-Money or see their respective abbreviations ITM, OTM, and ATM.

In-The-Money

A call option would be ITM when the strike price is below the current trading price of the underlying equity. For Example; a 30 strike, call option contract would be ITM if the current stock price is $30.01 or higher.

A put option would be ITM when the strike price is above the current trading price of the underplaying equity. For Example; a 40 strike, put option contract would be ITM if the current stock price is $39.99 or lower.

Out-Of-The-Money

A call option would be OTM when the strike price is above the current trading price of the underlying equity. For Example; a 25 strike, call option contract would be OTM if the current stock price is $24.99 or lower.

A put option would be OTM when the strike price is below the current trading price of the underplaying equity. For Example; a 50 strike, put option contract would be OTM if the current stock price is $50.01 or higher.

At-The-Money

As an equity price moves up and down at some point in time, it will be equal to the strike price. Thus, and ATM call or put would be equal to the current price of the underlying equity.

When an underlying equity is close but not exactly equal to the strike price of an option you will often hear, they referred to as near-the-money or close-to-the-money.

Intrinsic Value

The Intrinsic Value of a call option is the underlying stock’s current price minus the strike price. If the resulting difference is a negative number, then the intrinsic value is given as zero.

The Intrinsic Value of a put option is the strike price minus the underlying stock’s current price. If the resulting difference is a negative number, then the intrinsic value is given as a zero.

Extrinsic Value

Extrinsic value is the cost of time. The expression, “time is money,” is very true when it comes to option prices. As time passes extrinsic value diminishes until it reaches zero at the expiration of the contract. One of the challenges of options trading is this effect of time decay. Not only do you need to be right on direction but it’s also necessary to be correct on the trade timing.

Successful Options Trading

Learning option terminology and the mechanics of their construction is the first to becoming a successful options trader. At Right Way Options we believe a good education Key to trading success. We back up that belief with 10 hours of live options and stock training every week. If you would like to learn more, please visit our website and come back regularly for more valuable trading information.

[button_1 text=”Visit%20Our%20Benefits%20Page” text_size=”32″ text_color=”#000000″ text_bold=”Y” text_letter_spacing=”0″ subtext_panel=”N” text_shadow_panel=”Y” text_shadow_vertical=”1″ text_shadow_horizontal=”0″ text_shadow_color=”#ffff00″ text_shadow_blur=”0″ styling_width=”40″ styling_height=”30″ styling_border_color=”#000000″ styling_border_size=”1″ styling_border_radius=”6″ styling_border_opacity=”100″ styling_shine=”Y” styling_gradient_start_color=”#ffff00″ styling_gradient_end_color=”#ffa035″ drop_shadow_panel=”Y” drop_shadow_vertical=”1″ drop_shadow_horizontal=”0″ drop_shadow_blur=”1″ drop_shadow_spread=”0″ drop_shadow_color=”#000000″ drop_shadow_opacity=”50″ inset_shadow_panel=”Y” inset_shadow_vertical=”0″ inset_shadow_horizontal=”0″ inset_shadow_blur=”0″ inset_shadow_spread=”1″ inset_shadow_color=”#ffff00″ inset_shadow_opacity=”50″ align=”center” href=”https://hitandruncandlesticks.com/right-way-options/”/]

FREE Swing Trade Ideas

April 4, 2017 by Rick Saddler

Will the Children Ever Stop Fighting?

From a bull’s eye SPY:

Will the children ever stop fighting? Well, the answer is yes, the real question is when. This morning I was looking at the Volatility Stops (Indicator) on the 4-hour chart and the daily chart, it looks like between $233.40 and $236.10 is the battle-ground.

Looking over our watch list and scans we have no loss of bullish or bearish charts to trade, takes just a few min a day to do a little work produces great results.

FREE Trade Idea – CERN

CERN – Has broken out of our Rounded Bottom Breakout Pattern and the 200 period moving average. CERN is now a PBO flag at the T-Line.

Today we have 11 more members trade ideas located on the members trade ideas page.

Spotlight Trade – GKOS

GKOS was an HRC members swing idea on February 1; it’s currently up 26.71% at yesterday’s close.

Why GKOS? Because of the bullish J-Hook continuation pattern, and the bullish cup and handle that challenged the September 2016 highs with success. The February 1 trade alert to our members was because of the J-Hook continuation pattern coming from a little double bottom and support.

Bullish Piercing Pattern

Trying to identify the Bullish Piercing pattern? Look for this essential criteria:

The Rising Three Methods signal includes more candles than your typical candlestick pattern: five in total. However, this signal is easy to spot due to the three minuscule candles in the center. If you’re trying to pinpoint the presence of a Rising Three Methods pattern, look for the following criteria:

First, there must be one long green (or white) candle. Second, that first candle will be followed by three or more short red (or black) candles. Third, those three short candles must be contained within the first candle’s body, meaning their real bodies cannot reach above or below the first candle’s real body. Fourth, the short candles should be followed by another long green candle. Fifth and finally, the last candle must close above the first candle.

Also, the Rising Three Methods pattern typically follows an uptrend. Read More.

Members Trade Ideas Below