Stock Option Class

BDRE: Bullish Day Reversal Early

Bullish Stock Trade

  • Focus on stocks that are in a longer term up trend and have recently pulled back to a support level.
  • Avoid stocks that are in a steep downtrend or have corrected more than 30% in the last three weeks.
  • These situations are very risky and should only be considered by seasoned traders.
BDRE option chart

Day or Swing Trade

  • The sell off is temporarily overextended and the probability of a nice, quick bounce is high.
  • Use tight protective stops.
  • Closely monitor the positions.
  • Exit the trade if the move does not materialize in a day or two.
  • Seek small, quick, consistent profits.

Reversal Pattern

  • The trades are contrarian in nature and we are looking to buy a dip.
  • A reversal can only occur if there is something to reverse. Focus on stocks that have recently fallen between 5% -10% and are above longer term trend lines or moving averages.

Early Option Trading Opportunity

  • These searches identify set-ups that are forming during the current trading day.
  • The stock has not moved through a critical price point (as determined by the system) and it has not legitimized (confirmed) the Set-up.
  • Be willing to look at many opportunities with the intent of jumping aboard prematurely.
  • Higher risk/reward ratio.
  • If these trades move through a critical price level they will “confirm” and will be classified as: Bullish/Day/Reversal/Confirmed.