Trading options using Price Consolidation/MACD & Histogram analysis
Submitted by bigcat9 on Tue, 04/25/2017 - 21:56This is a very profitable option trading system I use to collect premiums by selling put options on stocks I do not own.The steps are as follows:
(1) Look for a stock that has entered a consolidation period after a strong advance
(2)After an MACD bearish crossover look for a continued price consolidation while the MACD line and
signal line are moving lower from an overbought situation.
(3)Enter when the MACD histogram is showing a bullish divergence with the MACD line nearing the signal line