Type
OneOption has designed a search engine that focuses on high probability trading set-ups that typically last from one day to one month. The search engine finds and lists the stocks. The results include and extensive tutorial that describes the Set-up and it includes detailed entry and exit parameters. Prior to selecting a Set-up, users select the Types of trades they are interested in seeing. The choices are described below.
Market Bias: Bullish/Bearish
A bullish trade will benefit from a rising market and a bearish trade will benefit from a falling market. Seasoned Traders know that 75% of all stocks follow the market’s direction. They use their short-term opinion to “put the wind at their back” and find trade set-ups in stocks that have respective strength or weakness. The trading engine is based on moves that take place over the course of days or weeks.
Time Horizon: Day/Week
Day trades are very short-lived and only last from one to three days. The searches identify temporary price anomalies that produce relatively small, quick profits. Week trades focus more on swing trading positions that will unfold over the course of the next few days and may last a week or two. The searches identify price patterns that have materialized over a number of trading days or weeks. Longer-term supply and demand forces are at work, propelling the stock in a sustained direction.
Price Pattern: Reversal/Continuation
Reversal trades are contrarian by nature. The searches identify stocks that have moved sharply and are showing signs of exhaustion. Traders feel that the over extended condition is about to end and they “go against the grain”. Continuation trades capitalize on intermediate term trends. The search identifies entry points and allows the Trader to “climb aboard” trending stocks while they rest. These opportunities often result when a stock temporarily departs from its trend but it leaves all of its intermediate term support/resistance levels in tact.
Trade Trigger: Early/Confirmed
Some Traders like to watch the trade unfold and they want to see it before the price reaches a critical point. They feel that they are closer to the trade and sometimes they can get a jump on it before it hits everyone else's radar. If they jump too early, the trade may never “pan out” and they are faced with a loser. They still feel that the advantages of being early outweigh the risks. Other Traders often look at so many trading set-ups that they don't want to be bothered by anything that isn't legitimate. They want to make sure the move is under way before they will consider it. Set-ups that are confirmed have reached critical price targets as defined by the system.