Stock Option Class

EDRE: Bearish Day Reversal Early

Bearish Stock Trade

  • Focus on stocks that are in a longer term down trend and have recently rallied to a resistance level.
  • Avoid stocks that are in a steep up trend or have risen more than 30% in the last three weeks.
  • These situations are very risky and should only be considered by seasoned traders.
EDRE option trade class

Day or Swing Trade

  • The rally is temporarily overextended, and the probability of a nice, quick drop 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 sell spikes.
  • A reversal can only occur if there is something to reverse. Focus on stocks that have recently gone up between 5% -10% and are below 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: Bearish/Day/Reversal/Confirmed .