Why Did Options Trading Opportunities Increase?

Traders Are Using Stock Chart Analysis

Options Trading has suddenly become far more popular with Professional Traders and Smaller Funds, who are now learning to trade Options. This means that Retail Traders will find more trading volume and opportunities than what have been around previously. It is the Renaissance of Options Trading, and what Professional Traders want now more than anything is Stock Chart Analysis Training for Options.

The chart example below shows a huge gap after a lengthy sideways candlestick pattern.

The sideways candlestick pattern also contains an Island Gap. If you study the last 2 months of the chart, you can see that the sideways candlestick pattern became very consistent just moving within the range of the prior sideways candlestick pattern before the Island Gap. Often, the price barely moved.

See the very precise tight consolidation of the 7 days prior to the huge gap up. This candlestick pattern reveals a steady bracketed order that was totally controlling price. This is one of several footprints on a stock chart of the giant Buy Side Institutions using Dark Pools or Twilight Pools to accumulate shares of stock. Confirmation of the large-lot indicators, which are TechniTrader Volume Accumulation (TTVA) in the middle chart window and TechniTrader Quiet Accumulation (TTQA) in the bottom chart window, reveals that this was an ideal setup for a velocity or momentum move to the upside.

The Professional Traders realize that the secret to successful Options Trading has more to do with selecting the right stock to trade rather than choosing what Options Strategy to use. They are learning Technical Analysis for the stocks they are considering for their Options Trading.

Professional Options Traders need to learn how to recognize and interpret the new technical candlestick patterns that have emerged over the past few years. These patterns are due to the massive Financial Market Structural Changes which every market has undergone, including the Options Market. When a Retail Trader is able to recognize the new candlestick patterns, they are able to trade with the Professional Traders.

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Trade Wisely,

Martha Stokes CMT

TechniTrader technical analysis using a MetaStock chart, courtesy of Innovative Market Analysis, LLC dba MetaStock

Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses

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