Timing of options trades relies on clear signals that point to reversal or continuation. This task is especially challenging when the price is range-round. A consolidation trend eventually ends, but how do you identify the signals? In fact, spotting breakout from consolidation is at times easier than spotting reversal from a bullish or bearish trend.… [READ MORE]

Among the many well-known reversals (head and shoulders, double tops and bottoms, gapping price action, etc.) one of the most often overlooked is the W bottom. This is a pattern developing to set up a ‘W’ shape in price. However, it is easy to create such a pattern whether it serves as reversal or not.… [READ MORE]

The timing of an options trade relies on identification of clear reversal signals and patterns. Among these are the well-known double tops and bottoms, an array of candlestick signals, and head and shoulders. Easily overlooked is the power of reversal found in the island cluster. This is a limited number of sessions trading in a… [READ MORE]