In the last article we looked at the Cobra trading pattern for the daily timeframe.
The scale of the model is 4-5 trading sessions, so it is difficult to identify more than three models over the period of one contract.
Slide #1 – September contract
Slide #2 – June contract
This year’s June contract for the S&P 500 Index is very generous with these types of models.
Apart from the “COBRA” model. You can read about it in detail in a previous article, also identified a model “HOOK”.
On slide #2 you can examine these trading models – they are marked with rectangles and signed accordingly. In the last article I highlighted the completion of the trading model “HOOK” and now you can observe its final stage – the continuation of buying.
The first HOOK pattern after the first impulses and the beginning of the trading trend to buy, the current one was also formed at the local maximum. In both cases after a 4 day rise to the high, then a 2 day correction is observed. Once the correction is over, it’s time to look for an opportunity to make a buy trade with minimal risk.
Expect to learn how to improve your strategy and better identify the right moment to enter a position in the coming articles. Sign up to not miss out on useful information.
The option level of 4300 – the target price – has already been reached, and given that there will be massive position-fixing by large traders this week, it is quite expected that the rise will not be prolonged as after the first HOOK trading pattern
On the slide #1 shows a chart and data of the new contract, which will be much more voluminous than the current one. The histogram on the left shows the SEP23 S&P 500 index option levels.
The difference in price between the old and new contract is now just over $40.
The September contract is more expensive.
author :: Mikhail Lemah2023